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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. Below investment grade bonds are generally called ________, since they are able to be transformed.
(a) Fallen angels.
(b) Junky bonds.
(c) Demons.
(d) Caterpillars.

2. What were the name of the bonds that Buffett seeks to promote through Berkshire?
(a) Angel.
(b) Junk.
(c) Zero-coupon.
(d) None.

3. Buffett's long term economic goal was to maximize per share _________ value of Berkshire stock by owning a diversified group of businesses.
(a) True.
(b) Economic.
(c) Market.
(d) Intrinsic.

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

5. Some Berkshire insurance subsidiaries used _______ with its greater returns than to use Treasury Bils.
(a) Investment games.
(b) Mediation.
(c) Arbitrage.
(d) Risky stocks.

Short Answer Questions

1. Many stocks had a _______, like Coca-Cola, but none have the same market share.

2. The purchase of the company listed in #49 was influenced by whose investing principles?

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

4. What was the name of the company that Buffett and Munger bought in 1973?

5. The partners considered a lesser interest if the ________ price was less than what it would be for 100%.

Short Essay Questions

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

2. Where did Berkshire directors have most of their net worth invested, according to the book?

3. How did Buffett and Munger buy public companies, according to the book's details?

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 Berkshire Hathaway become in the 1990s after its humble beginnings in the years before?

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

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

9. What was the long-term economic goal of the directors investing in the Berkshire company?

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

(see the answer keys)

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