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

2. The bonds that Buffett decides to buy in 1989 were thought to be ________, but turn out to be fallen angels.
(a) Junk.
(b) Evil.
(c) Meaningless.
(d) Priceless.

3. Value came from a fixed-income feature to set minimum value with __________ as a bonus.
(a) A unique product.
(b) A good economy.
(c) A strong management team.
(d) Conversion.

4. What is NOT one of the companies listed as having the management requirements that Buffett and Munger want to see?
(a) Champion.
(b) Salomon.
(c) Wal-Mart.
(d) USAir.

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

Short Answer Questions

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

2. Who did Buffett authorize to use the essays in the book to popularize the teachings and Buffett's own implementation of the teachings?

3. Buffett and Munger bought _________ companies the same way they might buy private companies.

4. Buffett and Munger promised to provide sufficient additional _______ to evaluate true results.

5. Buffett's wealth was solely in _________ stock, investing and reinvesting dividends on its proportional increase per share market value over time.

Short Essay Questions

1. What were two of the benefits of zero-coupon bonds, as listed by Berkshire in their promotions?

2. What were some of the companies included in the purchases of Berkshire Hathaway under Munger and Buffett?

3. What was the key principle of Ben Graham that guided the way that Buffett bought other businesses?

4. What did Berkshire Hathaway become in the 1990s after its humble beginnings in the years before?

5. What was the purpose of the fourteen owner-related business principles that Buffett lists in the book?

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

7. What did Buffett and Munger commit to providing to their 300,000 shareholders?

8. What was the concept of fallen angels, according to Buffett's lessons about investing?

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

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

(see the answer keys)

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