2. Which of the following is not part of Buffett's guide to selecting stocks?
(a) trading on tips.
(b) stocks within one's circle of competence.
(c) doing his own market analysis.
(d) ignoring macroeconomic trends and forecasts.

3. Susie's absence made life:
(a) made Warren more self-sufficient.
(b) difficult for Warren.
(c) game Warren more freedom.
(d) made Warren happier.

4. What stock did Buffett begin to buy in the fall of 1988?
(a) Coca-Cola.
(b) Pepsi-Cola.
(c) NBC.
(d) ABC.

5. Why is finance the opposite of investing?
(a) finance is based on Graham and Dodds theory.
(b) finance is based on Efficient Market Theory.
(c) finance is the same as investing.
(d) finance describes the corporate view of fund raising.

6. Buffett's Graham group, his inner circle, met:
(a) yearly.
(b) every six months.
(c) every odd year.
(d) monthly.

7. What did Buffett always look at, especially in insurance?
(a) growth potential.
(b) odds.
(c) premiums.
(d) profit.

8. As a result of the stock market crash in October 1985, Berkshire:
(a) was insolvent.
(b) lost one quarter of its value.
(c) increased in value.
(d) lost ten percent of its value.

9. What other kind of family-owned business did Buffet buy?
(a) another furniture store.
(b) grocery.
(c) jewelry.
(d) advertising.

10. In the 1980-84 period, insurance companies:
(a) stopped paying claims.
(b) stopped accepting new business.
(c) cut premiums trying to maintain market share.
(d) none of the above.

11. Who handled Berkshire's investments:
(a) Buffett alone.
(b) Charlie Munger.
(c) Buffett and Bill Scott.
(d) his staff of fourteen traders.

12. Capital Cities was a:
(a) heavy equipment company.
(b) real estate company.
(c) clothing company.
(d) big cable, broadcasting and publishing company.

13. What was Buffett's annual Christmas gift to each of his children?
(a) anything they wanted.
(b) vacations.
(c) ten shares of Berkshire stock.
(d) $10,000 the tax deductible limit on gifts to family members.

14. Why did Buffett refuse to financially support his adult children?
(a) he had other uses for his money.
(b) he was too cheap.
(c) he wanted them to lead normal, independent lives.
(d) he was angry with them.

15. Cap Cities would use the money from Berkshire to:
(a) modernize.
(b) buy ABC.
(c) invest in the satellite business.
(d) diversify.