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

2. What was the value of the shares of the company that Buffett and his partner purchased thirty years after its purchase?

3. Berkshire invested in companies with excellent economic prospects and outstanding __________.

4. Which of the partners had 99% of their net worth concentrated in Berkshire stock?

5. The permanent holdings at Berkshire were those that Buffett and Munger decided to keep, no matter what the _________ offered.

Short Essay Questions

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

2. What was listed as the difference between a fallen angel and a junk bond?

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

4. What did Buffett and Munger commit to providing to their 300,000 shareholders?

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

6. What might a CEO do if they were unlikely to dispose of their successful operating business, according to Buffett?

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

8. How did Buffett begin to promote the zero-coupon bonds from Berkshire, though it was complicated to do so?

9. Who was Mr. Market and where did Mr. Market come from, according to the book?

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

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 stated at several points that buying things at a fair price is a reasonable action to take.

Part 1: Do you think there is such a thing as a fair price?

Part 2: Who should be in charge of determining what a fair price might be?

Part 3: How do you determine what a fair price for an item or a service might be?

Essay Topic 3

Buffett decided to buy a company when their stock market value was less than their intrinsic value.

Part 1: Do you think Buffett should pay the intrinsic value or the stock market value?

Part 2: Why do you think a company might be worth less in the market than they are intrinsically?

Part 3: How do you think Buffett might approach a conversation about buying a company that has a lower market value?

(see the answer keys)

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