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

2. The bonds that Buffett decides to buy in 1989 were thought to be ________, but turn out to be fallen angels.

3. What was the stock market value of the company in #49 when it was first purchased by Buffett?

4. Value came from a fixed-income feature to set minimum value with __________ as a bonus.

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

Short Essay Questions

1. What was the definition of the idea of risk arbitrage, according to the book?

2. What did Buffett and Munger prefer to do when they invested in a company?

3. How did Buffett and Munger buy public companies, according to the book's details?

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

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

6. What is the content of this book often used for, according to the author?

7. What were some of the companies included in the purchases of Berkshire Hathaway under Munger and Buffett?

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

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

10. How did Buffett's criteria for buying companies and maintaining holdings help to maximize net worth in the long run?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Buffett stated that he finds some annual meetings to be useless to those who attend them and to those who run them.

Part 1: Do you think there is value in the annual meetings?

Part 2: Why do you think Buffett believes the annual meetings to be fairly useless?

Part 3: What do you think could be done in order to make annual meetings more useful to those who attend?

Essay Topic 2

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?

Essay Topic 3

Buffett and Munger thought it was better to monitor management as an investment strategy.

Part 1: How does management impact the way that a company works?

Part 2: Do you think management can be something that predicts financial stability?

Part 3: Why do you think Munger and Buffett looked at management to determine their investments?

(see the answer keys)

This section contains 650 words (approx. 3 pages at 300 words per page) View a FREE sample