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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

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

2. How much was the company worth that Buffett and his partner created at the time of this book?
(a) $70B.
(b) $30M.
(c) $10M.
(d) $5M.

3. A bond is _______ with regular payment of interest and repayment of principle.
(a) A promise.
(b) Debt.
(c) Nothing.
(d) A loan.

4. What were the name of the bonds that were issued during WWI?
(a) IRA.
(b) Series E.
(c) Series B.
(d) Series II.

5. Buffett managed by ________-related business principles, according to the book.
(a) Math.
(b) Owner.
(c) Business.
(d) Stock.

Short Answer Questions

1. What was the title of Buffett in relation to his company?

2. What was the initial book value of the company that Buffett and his partner acquired in 1964?

3. Which of the partners had 99% of their net worth concentrated in Berkshire stock?

4. Munger and Buffett act like ________ when it comes to considering the economic prospects of the businesses they buy.

5. What was the name of Warren Buffett's partner in the company they shared?

Short Essay Questions

1. How did Buffett begin to promote the zero-coupon bonds from Berkshire, though it was complicated to do so?

2. How did Buffett's criteria for buying companies and maintaining holdings help to maximize net worth in the long run?

3. What were the five different categories from which Buffett can select his investments?

4. Who was Mr. Market and where did Mr. Market come from, according to the book?

5. What was listed as the difference between a fallen angel and a junk bond?

6. What did Buffett and Munger invest based upon, instead of price quotes?

7. What was the definition of the idea of risk arbitrage, according to the book?

8. What happened as the result of Buffett following the advice of Ben Graham and David Dodd?

9. What did Buffett have to say about the idea of annual meetings for shareholders and other business managers?

10. What happened as a result of Buffett and Munger buying their holding companies at a fair rate or buying lesser interest in at the pro-rata price?

(see the answer keys)

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