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

Multiple Choice Questions

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

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

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

4. What was one of the stocks that Warren bought and promoted while at Buffett-Falk?
(a) Kimberly Clark.
(b) GEICO.
(c) Proctor & Gamble.
(d) Standard Oil.

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

6. The Post company controlled all but the following:
(a) Newsweek.
(b) Washington Post.
(c) Washington Monthly.
(d) Florida television stations.

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

8. These kinds of funds in this era were characterized as:
(a) bear market.
(b) bull market.
(c) Go Go.
(d) irresponsible trading.

9. Warren first ran away at the age of:
(a) fifteen.
(b) nine.
(c) sixteen.
(d) thirteen.

10. Warren did not want to attend college because:
(a) he wanted to work.
(b) he wanted to travel.
(c) he wanted to get married.
(d) he didn't feel he could learn anything.

11. Warren Buffett was born in___________.
(a) Chicago, Illinois.
(b) Memphis, Tennessee.
(c) Omaha, Nebraska.
(d) Kansas City, Nebraska.

12. What was the result of Warren's first year of partnership?
(a) they outperformed the Dow.
(b) the results were inconclusive.
(c) they underperformed.
(d) they matched the Dow in performance.

13. Buffett became a director on the board of the Post in:
(a) 1976.
(b) 1974.
(c) 1970.
(d) 1980.

14. What industry did Buffett become interested in at this time?
(a) newspaper.
(b) auto.
(c) steel.
(d) high tech.

15. Which of the following was not one of the three companies that Buffett used to purchase stock and other companies?
(a) Berkshire Hathaway.
(b) Diversified Retailing.
(c) American Express.
(d) Blue Chip Stamps.

Short Answer Questions

1. What did Buffett do that was different with Hochschild and Associated Cotton?

2. Buffett's goal, as stated to his partners, was to:

3. What did the Evening News do that resulted in an anti-trust suit?

4. Every year, Warren and Susie would:

5. What did Warren's father tell him when he returned from running away?

(see the answer keys)

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