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This quiz consists of 5 multiple choice and 5 short answer questions through Common Stock.

Multiple Choice Questions

1. Buffett dismissed risk in his choices with his notion that falling __________ prices present an opportunity to buy.
(a) Checking.
(b) Mortgage.
(c) Bond.
(d) Stock.

2. Buffett claimed in the book that most Berkshire shareholders will hang onto their shares for ____________.
(a) The time before retirement.
(b) Friends and family.
(c) Life.
(d) A few years.

3. The bonds that Buffett decides to buy in 1989 were thought to be ________, but turn out to be fallen angels.
(a) Meaningless.
(b) Junk.
(c) Priceless.
(d) Evil.

4. The NYSE listing for Berkshire was thought to reduce _______ for shareholders by ensuring a narrow market maker spread.
(a) Variance.
(b) Transaction costs.
(c) Price of stock.
(d) Instability.

5. Buffett and Munger promise to never ________ unless they are selling at a market price well below intrinsic business value.
(a) Exchange shares.
(b) Lower dividends.
(c) Repurchase shares.
(d) Liquidate assets.

Short Answer Questions

1. Buffett believed that many annual ________ were a waste of time for the shareholders and the management.

2. Berkshire's board included a controlling ________, in which other board members could persuade others to make changes.

3. Buffett and Munger recapitalize into Class A and _____ non-voting shares to offer a lower trading price.

4. Buffett noted that a CEO had no direct ______ or clear standards of performance, making even under performing ones able to continue working.

5. In 1992, what did the Berkshire per share stock price increase past?

(see the answer key)

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