View a FREE sample

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

Multiple Choice Questions

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

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

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

4. A CEO unlikely to dispose of his successful operating business may sell profitable stock investments to redeploy _________.
(a) Interest.
(b) Nothing.
(c) Dividends.
(d) Capital.

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

6. What was the one thing that Munger and Buffett would not address in their question sessions?
(a) Numbers.
(b) Nothing.
(c) Investment strategies.
(d) Personal business.

7. Ben Graham personified the market with the name ___________, to give it a more human side.
(a) Mr. Big.
(b) The Market Man.
(c) Sir Market.
(d) Mr. Market.

8. 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."
(a) Philosophy.
(b) Product.
(c) Intrinsic value.
(d) Management.

9. Alternative investments were considered for __________ high quality investments when a preferable business could not be located.
(a) Basic.
(b) Short-term.
(c) Long-term.
(d) Future.

10. How much profit did the new holding of Berkshire make for Buffett and Munger?
(a) $500M.
(b) $150M.
(c) $100M.
(d) $250M.

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

12. What was the initial book value of the company that Buffett and his partner acquired in 1964?
(a) $10.67.
(b) $19.46.
(c) $35.00
(d) $47.01.

13. The market was considered a business partner with incurable _______ problems, according to the book.
(a) Spiritual.
(b) Banking.
(c) Investment.
(d) Emotional.

14. How many shareholders did Munger and Buffett pledge to provide fair and simultaneous reporting to?
(a) 50%.
(b) 15,000.
(c) 10.
(d) 300,000.

15. Berkshire's board included a controlling ________, in which other board members could persuade others to make changes.
(a) Outsider.
(b) Competitor.
(c) Shareholder.
(d) Owner.

Short Answer Questions

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

2. Some Berkshire insurance subsidiaries used _______ with its greater returns than to use Treasury Bils.

3. Below investment grade bonds are generally called ________, since they are able to be transformed.

4. Half of all major American companies match __________ donations of directors.

5. The $70B enterprise that Buffett and his partner buy includes GEICO and ________ corporation.

(see the answer keys)

This section contains 412 words (approx. 2 pages at 300 words per page) View a FREE sample