View a FREE sample

This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. Which is not one of the three stocks that Buffett heavily invested in the 1960?
(a) Berkshire-Hawthaway.
(b) Disney.
(c) American Express.
(d) TWA.

2. The Evening News' rival newspaper was the:
(a) Courier Express.
(b) New York Times.
(c) Toronto Star.
(d) New York Post.

3. What problems did Buffett have making investments in the mid-1960s?
(a) a massive withdrawal of capital.
(b) there were few good bargains in stocks.
(c) increased competition.
(d) a severe market slump.

4. Every year, Warren and Susie would:
(a) travel to New York.
(b) shop in Beverly Hills.
(c) host a dinner for the investors.
(d) travel to Europe.

5. While reaching Ben Graham, Warren learned about a company called:
(a) Kimberly-Clark.
(b) GEICO.
(c) AT&T.
(d) State Farm Insurance.

6. Studying under Graham allowed Warren to:
(a) learn to develop a business.
(b) develop his own natural abilities.
(c) complete his thesis.
(d) quality to teach.

7. What did the Evening News do that resulted in an anti-trust suit?
(a) lowered prices.
(b) lowered prices below costs.
(c) tried to force the Courier-News out of business.
(d) announced the publication of a Sunday edition.

8. Warren made big profits by engaging in a practice known as:
(a) leveraged buyouts.
(b) stock splitting.
(c) back room trading.
(d) arbitrage.

9. What newspaper stock did Buffett buy heavily?
(a) Miami Herald.
(b) Washington Post.
(c) New York Times.
(d) Chicago Sun Times.

10. What term can be used to characterize Warren at this age?
(a) self-confident.
(b) unrealistic.
(c) ignorant.
(d) cocky.

11. In their senior year, Warren and Danley opened a:
(a) stock quote business.
(b) courier service.
(c) magazine clipping service.
(d) pinball machine business.

12. What is the value of diversification?
(a) the names of the stocks.
(b) ease of management.
(c) prestige.
(d) balance.

13. What kind of stocks were most popular at this time?
(a) huge conglomerates.
(b) small companies.
(c) blue chip.
(d) high tech.

14. What course did Warren teach at the University of Omaha?
(a) Introduction to Economics.
(b) Managerial Economics.
(c) Introduction to Finance.
(d) Investment Principles.

15. What step did Buffett take in early 1966?
(a) hired new analyst.
(b) closed the partnership to new accounts.
(c) quit the market.
(d) began a new fund.

Short Answer Questions

1. By the time of World War I, what part of the New Bedford labor force worked at the mill?

2. What did Warren vow after his involvement with Dempster?

3. What was one of Buffett's first possessions that had to do with money?

4. What is the main qualification for buying a stock?

5. What industry did Buffett become interested in at this time?

(see the answer keys)

This section contains 425 words (approx. 2 pages at 300 words per page) View a FREE sample