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

Multiple Choice Questions

1. What company did Buffett say he would hold for the rest of his life?
(a) Berkshire.
(b) See's Candy.
(c) Wesco.
(d) Diversified.

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

3. What did the Courier-Star accuse the Evening News of?
(a) making deals with advertisers.
(b) lack of ethics.
(c) poor reporting.
(d) monopolistic practices.

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

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

6. As Buffett's income and wealth grew, he:
(a) basically maintained his same lifestyle.
(b) he collected more material things ostentaciously.
(c) his spending habits changed.
(d) he traveled more.

7. In early 1967, Buffett advised his partners that:
(a) newer nutual funds achieved better returns than his did.
(b) he was changing the scope of the business.
(c) there was too much competition in the market.
(d) the market was going to crash.

8. The Buffett children describe their mother as:
(a) friendly.
(b) outgoing.
(c) lenient.
(d) moody.

9. What was not a characteristic of a performance fund?
(a) moving in and out of stocks.
(b) making fast money.
(c) sustained long term growth.
(d) short term perspective.

10. What did Warren's father tell him when he returned from running away?
(a) he was grounded for one month.
(b) he was sending him back to Nebraska.
(c) quit his job as punishment.
(d) improve his grades or give up the paper route.

11. What did Buffett advise his partners of in May 1967?
(a) he was liquidating Buffett Partnership.
(b) the partnership would go on without him.
(c) Buffett Partnership was facing huge losses.
(d) he was turning Buffett Partnership into a Performance Fund.

12. During this time, Susie:
(a) separated from Warren.
(b) became a singer.
(c) began making her own investments.
(d) returned to school.

13. What was important to the young Warren?
(a) making money and watching it grow.
(b) schools.
(c) books.
(d) games.

14. Warren bought all but the following through Berkshire:
(a) American Express.
(b) Sun Newspaper.
(c) Illinois National Bank and Trust.
(d) National Indemnity Company.

15. What was the most important aspect of American Express?
(a) its dividends.
(b) its assets.
(c) its history.
(d) its name.

Short Answer Questions

1. At the 1968 meeting of his friends, who was not invited?

2. Book value is:

3. Warren first ran away at the age of:

4. What did Buffett recommend that the Post do?

5. What newspaper stock did Buffett buy heavily?

(see the answer keys)

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