|Name: _________________________||Period: ___________________|
This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. Buffett's wealth was solely in _________ stock, investing and reinvesting dividends on its proportional increase per share market value over time.
2. The content of the book was often used as a standard text at the Cardozo School of __________.
3. _________ were often unwilling to discuss the business issues during meetings.
4. Berkshire might evolve into a _______ form of board situation, upon Buffett's death, according to the book.
5. Buffett dismissed risk in his choices with his notion that falling __________ prices present an opportunity to buy.
Short Essay Questions
1. What did Buffett decide to do in order to create a meeting in which business owners would be informed about the year's business growth and development?
2. What was listed as the difference between a fallen angel and a junk bond?
3. How did Buffett and Munger buy public companies, according to the book's details?
4. What was the main problem with the idea of efficient market theory, according to Buffett?
5. What did Buffett and Munger invest based upon, instead of price quotes?
6. What were some of the issues that could come up within an annual meeting, which made Buffet want to avoid these meetings?
7. What was the purpose of the fourteen owner-related business principles that Buffett lists in the book?
8. What would business contraction cause, though Buffett says this was also an opportune time for investment?
9. Where did Berkshire directors have most of their net worth invested, according to the book?
10. Whose investing principles guided the Buffett purchase of Washington Post Company?
Write an essay for ONE of the following topics:
Essay Topic 1
Buffett and Munger didn't like to split their stock, even though they were asked to do so many times.
Part 1: Why do Buffett and Munger decide not to split their stock?
Part 2: Do you think Buffett and Munger made the right decision to keep their stock?
Part 3: Do you think Munger and Buffett are fair to their shareholders?
Essay Topic 2
In order to buy bonds and stock in a company, Buffett and Munger required that companies have a firm management style.
Part 1: How might you define the idea of a firm management style?
Part 2: What are some modern companies today that have a good management approach?
Part 3: Do you think a company can be a success without a strong management team?
Essay Topic 3
Buffett and Munger didn't use a strategic plan of acquisition, but rather compared opportunities against passive investments.
Part 1: Why do you think Buffett and Munger didn't have a plan for acquisitions?
Part 2: Do you think it's a better idea to have a plan when dealing with more extensive acquisition deals?
Part 3: How do you think Buffett and Munger's approach benefits them?
This section contains 655 words
(approx. 3 pages at 300 words per page)