|Name: _________________________||Period: ___________________|
This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. What kind of pro told Buffett the piece of information that helped to guide them on the field?
2. Buffett and Munger did not operate a strategic plan for __________ but compare opportunities against passive investments.
3. The partners were interested firms that are adapted to ______ times that could readily increase prices and scale up to a large volume with more capital.
4. The partners were also interested in firms that had extraordinary ________ talent exhibiting skillful executive achievement.
5. ___________ recognized that statements are not adequate compared to segment data that enabled control of business.
Short Essay Questions
1. What were the three main thing that shareholders always knew about Munger and Buffett?
2. How did Buffett avoid diluting share value to existing shareholders?
3. What did Buffett want to do with the Berkshire stock on the NYSE?
4. What did Buffett try to do in order to avoid problems with the two contagious diseases in the investment community?
5. What did Buffett say should happen to some earnings in dividends?
6. Why would a company want to repurchase their own shares, according to Buffett?
7. What did Buffett expect to owners of stock to do when he creates a principle that earnings should be retained to the extent each retained dollar creates at least one dollar of market value for owners?
8. Why did many executives argue about the costs of stock options and why they should be ignored?
9. What were the two super contagious diseases that could spread in the investment community?
10. What was done in order to minimize any loss from accounting adjustments during the US Steel transactions?
Write an essay for ONE of the following topics:
Essay Topic 1
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 2
Warren and Charlie likened the process of acquiring a business to that of finding a spouse.
Part 1: Why is it exciting to acquire another company?
Part 2: What are some of the reasons for acquiring another company?
Part 3: Do you think companies need to buy other companies in order to be successful?
Essay Topic 3
Mr. Market was a fun character made up by Graham to teach marketing principles.
Part 1: Why do you think Mr. Market is a good representation of the modern day investor?
Part 2: Do you think Mr. Market is the same today as he was at the time of Graham's teachings?
Part 3: How might you compare Mr. Market to yourself in terms of how you would approach investing and financial decisions?
This section contains 694 words
(approx. 3 pages at 300 words per page)