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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. During the early 1960s, the company's stock price:
(a) decreased.
(b) stock split several times.
(c) doubled in value.
(d) increased.

2. How did Buffett view investments and taxes?
(a) the goal is to minimize taxes.
(b) investments are made for tax purposes.
(c) the object should be to achieve the largest after tax rate of compound.
(d) tax avoidance is the reason for investing.

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

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

5. Buffett bought enough of Berkshire to:
(a) to anger his other partners.
(b) sit on the board.
(c) bring on a lawsuit.
(d) arouse the curiousity of the press.

Short Answer Questions

1. What did Buffett advise his partners of in May 1967?

2. What is the value of diversification?

3. What event occurred in August 1967?

4. A cotton mill was established in New Bedford in:

5. In 1964, Stanton:

Short Essay Questions

1. How did Buffett become active in stock trading again?

2. Why did Buffett close the partnership to new accounts in 1966?

3. What were Buffett's views on religion?

4. What was happening with other mutual funds by early 1967?

5. Where was Warren Buffett born and raised?

6. What was Warren interested in as a child?

7. How did Warren handle investments for others? What were his terms?

8. In evaluating companies, Buffett looked at whether they were cash consuming or cash generating. What is the difference?

9. How did Buffett's partnership differ from other mutual funds?

10. What brought on the SEC investigation of Buffett and Munger?

(see the answer keys)

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