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

Multiple Choice Questions

1. Berkshire invested in companies with excellent economic prospects and outstanding __________.
(a) Stock prices.
(b) Ideas.
(c) Managers.
(d) Websites.

2. Buffett's long term economic goal was to maximize per share _________ value of Berkshire stock by owning a diversified group of businesses.
(a) Intrinsic.
(b) True.
(c) Economic.
(d) Market.

3. Who was the financial mentor that Buffett relied upon for his teachings and lessons about the way to do business?
(a) Ben Graham.
(b) Himself.
(c) No one.
(d) Charlie Munger.

4. Buffett and Munger promised to provide sufficient additional _______ to evaluate true results.
(a) Research.
(b) Funding.
(c) Information.
(d) Shareholders.

5. What was the value of the shares of the company that Buffett and his partner purchased thirty years after its purchase?
(a) $15,000 per share.
(b) $10,000 per share.
(c) $40,000 per share.
(d) $25,000 per share.

Short Answer Questions

1. What was NOT one of the elements listed in the elements of arbitrage in the book?

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

3. The margin of ________ was the cornerstone of investment success, according to Graham.

4. How many owner-related business principles were listed in this section of the book by Buffett?

5. The intrinsic business value goal was reached by ________, preferably 100% ownership of diverse business firms generating cash and above-average returns on capital.

(see the answer key)

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