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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. Buffett criticizes __________ market theory as be does not believe it to be a truth.
(a) Eradicant.
(b) Efficient.
(c) Effective.
(d) Erasing.

2. The permanent holdings at Berkshire were those that Buffett and Munger decided to keep, no matter what the _________ offered.
(a) Price.
(b) Options.
(c) Value.
(d) Name.

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

4. Buffett and Munger do not check _________'s manic depressive daily price quotes to validate their investment.
(a) New York Times.
(b) Wall Street.
(c) Mr. Big.
(d) Mr. Market.

5. The board was ultimately responsible for any _______'s performance in the companies they held.
(a) CEO.
(b) Worker.
(c) Shareholder.
(d) Market.

6. Preferred stock is considered with _________ that Munger and Buffett like, admire, and trust.
(a) Management.
(b) History.
(c) Products.
(d) Values.

7. Which state was Buffett worried about in terms of its ability to create good investments for his company?
(a) Alabama.
(b) Hawaii.
(c) California.
(d) Illinois.

8. The _______ doesn't feel poorer when the embezzler is getting richer.
(a) Country.
(b) Market.
(c) Government.
(d) Victim.

9. The $70B enterprise that Buffett and his partner buy includes GEICO and ________ corporation.
(a) Microsoft.
(b) GE Re.
(c) Apple.
(d) General Mills.

10. Essays are from __________ that Buffett prepared for and wrote for Berkshire shareholders.
(a) Annual reports.
(b) Personal notes.
(c) Seminars.
(d) Trainings.

11. What was the name of the company that Buffett and Munger bought in 1973?
(a) New York Times.
(b) Chicago Tribune.
(c) Washington Post.
(d) Florida Gazette.

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

13. The partners considered a lesser interest if the ________ price was less than what it would be for 100%.
(a) Pro-biotic.
(b) Pro-management.
(c) Pro-rata.
(d) Pro-rate.

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

15. Munger and Buffett act like ________ when it comes to considering the economic prospects of the businesses they buy.
(a) Business analysts.
(b) Kids.
(c) Bankers.
(d) Stock traders.

Short Answer Questions

1. What was the title of Buffett's partner in the company they shared?

2. Buffett's ______ years of experience cause him to think that efficient times in the market do not constitute an efficient market.

3. Buffett thought that any CEO who set earning targets and forecasts might also take ______ with accounting measures.

4. Berkshire might evolve into a _______ form of board situation, upon Buffett's death, according to the book.

5. Buffett and Munger saw themselves as general _______ responsible to other shareholders.

(see the answer keys)

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