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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 and Munger promise to never ________ unless they are selling at a market price well below intrinsic business value.

2. What is NOT one of the three excuses often given by an overpaying buyer, according to the book?

3. Buffett avoids _________ share value to existing shareholders by true value for value merger, using stock as inflated currency.

4. Buffett discussed the popularity of _________ buyouts as they had a number of different benefits to them.

5. Buffett preferred to trade a narrow range around _________ business value to favor long-term owners.

Short Essay Questions

1. What were the two super contagious diseases that could spread in the investment community?

2. What did Buffett prefer in trading that allowed for more benefits to long-term owners of stock?

3. What was the benefit of major business activities being grouped together?

4. What was the simple rule that Buffett followed when it came to exchange of stock during a merger?

5. What was the expected benefit for the Berkshire NYSE listing, according to the book?

6. What was the result of information that is necessary to report to an investor or shareholder?

7. What threatened the global competitiveness of major American industries, according to the book?

8. What happened as the result of the fictional accounting actions by US Steel?

9. What were the two categories of most interest for Munger and Buffett when they wanted to add to their holdings?

10. Despite his frustration with the GAAP, what did Buffett come to realize about accounting data?

Essay Topics

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

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?

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)

This section contains 666 words (approx. 3 pages at 300 words per page) View a FREE sample