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

2. The intrinsic business value goal was reached by ________, preferably 100% ownership of diverse business firms generating cash and above-average returns on capital.
(a) Prominent.
(b) Direct.
(c) Passive.
(d) Indirect.

3. Most Berkshire _______ had their net worth invested primarily in the company.
(a) Workers.
(b) Directors.
(c) Shareholders.
(d) Secretaries.

4. Berkshire's long-term investment strategy to buy and to hold _______ for the long term was something that was comfortable to them.
(a) Buildings.
(b) Decisions.
(c) Investments.
(d) Stockholders.

5. Berkshire Hathaway's insurance companies maintained how many permanent common stock holdings?
(a) Three.
(b) Five.
(c) Ten.
(d) Four.

Short Answer Questions

1. How much was the company worth that Buffett and his partner created at the time of this book?

2. Which business did Munger and Buffett decide to close, despite their best efforts?

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

4. What was the name of the bond holdings that Buffett added to Berkshire in 1989?

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

Short Essay Questions

1. Whose investing principles guided the Buffett purchase of Washington Post Company?

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

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

4. What is the content of this book often used for, according to the author?

5. What was the main problem with the idea of efficient market theory, according to Buffett?

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

7. What did Buffett and Munger prefer to do when they invested in a company?

8. What did Buffett decide to do in order to create a meeting in which business owners would be informed about the year's business growth and development?

9. What might a CEO do if they were unlikely to dispose of their successful operating business, according to Buffett?

10. What did Buffett and Charlie Munger do together, which led to the creation of this book?

(see the answer keys)

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