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

Multiple Choice Questions

1. When did Buffett and Munger buy the Buffalo Evening News?
(a) 1980.
(b) 1974.
(c) 1976.
(d) 1978.

2. Warren worked on all of the following during this period:
(a) the family grocery business.
(b) teaching in night school.
(c) Buffett-Falk.
(d) a Dale Carnegie course.

3. What did the young Warren trust?
(a) his grandfather.
(b) numbers.
(c) religion.
(d) his sister.

4. Katherine Graham was the owner of the:
(a) Los Angeles Times.
(b) New York Times.
(c) Washington Post.
(d) Washington Star.

5. As a child, Warren was interested in:
(a) the stock market.
(b) model cars.
(c) games.
(d) baseball.

6. Following Buffett's advice, the Post:
(a) lost money.
(b) greatly increased its return on equity.
(c) expanded its operations.
(d) attracted new readers.

7. Warren educated himself in all but the following ways:
(a) attending night school.
(b) studying actuarial tables.
(c) running his paper route.
(d) reading business books.

8. Warren's father worked as a ___________.
(a) securities salesman.
(b) grocer.
(c) factory worker.
(d) farmer.

9. What did Buffett recommend that the Post do?
(a) expand magazine operations.
(b) expand overseas.
(c) expand television operations.
(d) buy back its own stock.

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

11. Book value is:
(a) the value of a company's asset.
(b) the value of a company's stock.
(c) what the market thinks a business is worth.
(d) capital invested in a business plus retained profits.

12. Buffett feared being known as:
(a) wealthy.
(b) a loser.
(c) unethical.
(d) a liquidator.

13. In what simple way did Buffett find that people were still using their American Express cards?
(a) he hired an analyst to perform research
(b) he contacted the chairman of the board.
(c) he sat in a restaurant and watched how people paid thier bills.
(d) he hired a market research firm to perform a survey.

14. Buffett communicated with partners:
(a) on the phone.
(b) by personal meetings with them.
(c) through letters.
(d) holding monthly meetings.

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

Short Answer Questions

1. During this time, Susie:

2. In their senior year, Warren and Danley opened a:

3. The SEC inquiry was concerned with:

4. According to the terms offered to the Davises, what percent of the profits would Warren receive?

5. As Buffett's income and wealth grew, he:

(see the answer keys)

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