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

Multiple Choice Questions

1. Buffett believed that many annual ________ were a waste of time for the shareholders and the management.
(a) Updates.
(b) Reports.
(c) Charts.
(d) Meetings.

2. How many primary holdings were permanent in the time of Buffett and Munger?
(a) One.
(b) Two.
(c) Three.
(d) Four.

3. What was the stock market value of the company in #49 when it was first purchased by Buffett?
(a) $300M.
(b) $100M.
(c) $500M.
(d) $250M.

4. Some Berkshire insurance subsidiaries used _______ with its greater returns than to use Treasury Bils.
(a) Investment games.
(b) Risky stocks.
(c) Mediation.
(d) Arbitrage.

5. The $70B enterprise that Buffett and his partner buy includes GEICO and ________ corporation.
(a) GE Re.
(b) Microsoft.
(c) Apple.
(d) General Mills.

6. What was the one thing that Munger and Buffett would not address in their question sessions?
(a) Personal business.
(b) Investment strategies.
(c) Numbers.
(d) Nothing.

7. Buffett is proud that ____% of the shares outstanding at the end of each year were held by the same shareholders.
(a) 99.
(b) 90.
(c) 98.
(d) 50.

8. Berkshire's long-term investment strategy to buy and to hold _______ for the long term was something that was comfortable to them.
(a) Buildings.
(b) Stockholders.
(c) Investments.
(d) Decisions.

9. Buffett managed by ________-related business principles, according to the book.
(a) Stock.
(b) Business.
(c) Owner.
(d) Math.

10. Who was the financial mentor that Buffett relied upon for his teachings and lessons about the way to do business?
(a) No one.
(b) Himself.
(c) Charlie Munger.
(d) Ben Graham.

11. Berkshire might evolve into a _______ form of board situation, upon Buffett's death, according to the book.
(a) Third.
(b) Second.
(c) Fourth.
(d) Dissolved.

12. Which state was Buffett worried about in terms of its ability to create good investments for his company?
(a) Hawaii.
(b) Illinois.
(c) Alabama.
(d) California.

13. Who did Buffett authorize to use the essays in the book to popularize the teachings and Buffett's own implementation of the teachings?
(a) Cunningham.
(b) Munger.
(c) No one.
(d) Smith.

14. Buffett did not expand, borrow, or sell unless Berkshire received as much _________ as it gave.
(a) Value.
(b) Promise.
(c) Power.
(d) Dividends.

15. Berkshire Hathaway's insurance companies maintained how many permanent common stock holdings?
(a) Five.
(b) Three.
(c) Four.
(d) Ten.

Short Answer Questions

1. What was the name of Warren Buffett's partner in the company they shared?

2. Buffett claimed in the book that most Berkshire shareholders will hang onto their shares for ____________.

3. Buffett and Munger also followed the idea of minimal use of _______ and leverage, helping to create solid investments.

4. Buffett dismissed risk in his choices with his notion that falling __________ prices present an opportunity to buy.

5. The _______ doesn't feel poorer when the embezzler is getting richer.

(see the answer keys)

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