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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. By the time of World War I, what part of the New Bedford labor force worked at the mill?
(a) three fourths.
(b) one third.
(c) one fourth.
(d) one half.

2. What did Warren vow after his involvement with Dempster?
(a) he would never lay off people again.
(b) he wanted to start a new company.
(c) he wanted to be a liquidator.
(d) he liked the experience.

3. What company did Buffett say he would hold for the rest of his life?
(a) Berkshire.
(b) Diversified.
(c) Wesco.
(d) See's Candy.

4. At the 1968 meeting of his friends, who was not invited?
(a) Bill Ruane.
(b) Charlie Munger.
(c) Ben Graham.
(d) Carl Ican.

5. Buffett's goal, as stated to his partners, was to:
(a) purchase blue chip stocks.
(b) achieve a 10% rate of return.
(c) make them wealthy.
(d) beat the Dow by an average of ten points per year.

6. Why did the Buffetts move to New York in 1954?
(a) Buffett accepted a job at Graham-Newman.
(b) Warren wanted to find a job.
(c) Warren wanted a wider customer base.
(d) Buffett wanted to work at the New York Stock Exchange.

7. What was the result of Warren's first year of partnership?
(a) they outperformed the Dow.
(b) they underperformed.
(c) the results were inconclusive.
(d) they matched the Dow in performance.

8. How old was Warren when his father became Congressman?
(a) six.
(b) eighteen.
(c) twenty three.
(d) twelve.

9. Which of the following was not some thing that Howard Buffett was against?
(a) protecting US savings bond owners against inflation.
(b) the Bretton Woods monetary scheme.
(c) European grain exports.
(d) school lunch programs.

10. Buffett began buying stocks:
(a) with bargain prices for Berkshire.
(b) for partners.
(c) for the Buffett foundation.
(d) for his own account.

11. Buffett Partnership was Berkshire's biggest stockholder by:
(a) 1963.
(b) 1965.
(c) 1966.
(d) 1962.

12. Which of the following is not one of the terms of Warren's partnership?
(a) Warren would only make the investments his partners wanted.
(b) Investors had no say in the kinds of investments.
(c) secrecy.
(d) adding and withdrawing capital only on December 31.

13. What did the Courier-Star accuse the Evening News of?
(a) monopolistic practices.
(b) poor reporting.
(c) making deals with advertisers.
(d) lack of ethics.

14. While reaching Ben Graham, Warren learned about a company called:
(a) GEICO.
(b) State Farm Insurance.
(c) Kimberly-Clark.
(d) AT&T.

15. What was important to the young Warren?
(a) schools.
(b) books.
(c) making money and watching it grow.
(d) games.

Short Answer Questions

1. In what simple way did Buffett find that people were still using their American Express cards?

2. Berkshire and Hathaway merged in:

3. Book value is:

4. Warren attended graduate school at:

5. Warren handled his investments with people:

(see the answer keys)

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