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

Multiple Choice Questions

1. Buffett's wealth was solely in _________ stock, investing and reinvesting dividends on its proportional increase per share market value over time.
(a) Berkshire.
(b) GEICO.
(c) Wells Fargo.
(d) Coca-Cola.

2. Preferred firms must pay returns above ______ investments and be compatible with management.
(a) Past.
(b) Future.
(c) Mr. Market.
(d) Fixed-income.

3. Buffett's criteria measured _________ expectations of the highest after-tax returns to maximize net worth in the long run.
(a) Probable.
(b) Emotional.
(c) Accounting.
(d) Mathematical.

4. Which of the partners had 99% of their net worth concentrated in Berkshire stock?
(a) Buffett.
(b) Neither.
(c) Both.
(d) Munger.

5. The content of the book was often used as a standard text at the Cardozo School of __________.
(a) Engineering.
(b) Law.
(c) Medicine.
(d) Business.

Short Answer Questions

1. Keynes stated: "The right method of investment is to put fairly large sums of money into enterprises which one thinks one knows something about and in the ________ of which one thoroughly believes."

2. Preferred stock is considered with _________ that Munger and Buffett like, admire, and trust.

3. A stock _______ might attractive investors unlike their current investor group which might downgrade the quality of the shares.

4. What did Berkshire do in the case of the zero-coupon bonds? They deducted ______ with no cash paid out.

5. _________ percentage ownership was acquired when the market presented opportunities, according to the book.

(see the answer key)

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