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This quiz consists of 5 multiple choice and 5 short answer questions through Accounting and Valuation.

Multiple Choice Questions

1. Popular theory at the time said that the market was totally efficient at _________ investment.
(a) Purchasing.
(b) Scattered.
(c) Pricing.
(d) Value.

2. Buffett started to buy _____ businesses at good prices instead of buying good businesses at fair prices.
(a) Valuable.
(b) Fair.
(c) True.
(d) Good.

3. In some cases, the benefits of partial ownership earnings may far outweigh the ________ acquisition cost.
(a) Value.
(b) Market.
(c) Fees and.
(d) Per-share.

4. The Berkshire dividend share of Coca-Cola in 1990 included operating earnings of ___________.
(a) $100M.
(b) $250M.
(c) $125M.
(d) $500M.

5. Below investment grade bonds are generally called ________, since they are able to be transformed.
(a) Junky bonds.
(b) Fallen angels.
(c) Caterpillars.
(d) Demons.

Short Answer Questions

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

2. Buffett is proud that ____% of the shares outstanding at the end of each year were held by the same shareholders.

3. While Munger and Buffett were excited when they are in the process of acquiring a new business, they were also _________.

4. What did a bondholder have to do with their bond if they decided to cash it in early?

5. Berkshire management's goal was to acquire and to retain high quality __________.

(see the answer key)

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