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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. Confusing ________ requirements were offset by the partners' willingness to report look-through earnings.

2. Buffett believed that many annual ________ were a waste of time for the shareholders and the management.

3. Buffett and Munger saw themselves as general _______ responsible to other shareholders.

4. Buffett and Munger bought _________ companies the same way they might buy private companies.

5. _________ percentage ownership was acquired when the market presented opportunities, according to the book.

Short Essay Questions

1. Whose investing principles guided the Buffett purchase of Washington Post Company?

2. What were some of the issues that could come up within an annual meeting, which made Buffet want to avoid these meetings?

3. What did Buffett fear about investing in companies that were located in California?

4. Who did Buffett consider to be partners with him in his business, according to the book?

5. What was the purpose of the fourteen owner-related business principles that Buffett lists in the book?

6. Where did Berkshire directors have most of their net worth invested, according to the book?

7. How did Buffett seek to define a corporation as a mechanism? What exactly did this mean?

8. What did Buffett and Charlie Munger do together, which led to the creation of this book?

9. What was the concept of fallen angels, according to Buffett's lessons about investing?

10. What happened as the result of Buffett following the advice of Ben Graham and David Dodd?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Inactivity in investing was seen as intelligent investing as well, even though nothing was being done during some of these periods.

Part 1: Why might inactivity be beneficial to investing?

Part 2: Do you think inactivity or action is more helpful to an investing strategy?

Part 3: What do you think your investing approach might look like? Active or inactive? Both?

Essay Topic 2

Buffett and Munger wanted fair and accurate reporting from all of their company CEOs at all times.

Part 1: Do you think it's possible to have fair and accurate reporting at all times?

Part 2: Why do you think it's important for CEOs to be accurate in their reporting?

Part 3: How do you think Buffett and Munger handled those CEOs who were not able to report on their company's status?

Essay Topic 3

Buffett and Munger supported acquiring firms only when the added intrinsic value to their market shares.

Part 1: Why do you think Buffett and Munger only wanted to acquire firms that added value?

Part 2: Do you think modern day companies limit the types of companies they acquire?

Part 3: How do you think Berkshire Hathaway might be been different had they simply bought any company that was up for sale?

(see the answer keys)

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