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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. What was the value of the shares of the company that Buffett and his partner purchased thirty years after its purchase?

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

3. The board was ultimately responsible for any _______'s performance in the companies they held.

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

5. Buffett claimed in the book that most Berkshire shareholders will hang onto their shares for ____________.

Short Essay Questions

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

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

3. What would business contraction cause, though Buffett says this was also an opportune time for investment?

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

5. 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?

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

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

8. Who did Buffett consider to be partners with him in his business, according to the book?

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

10. How did Buffett seek to define a corporation as a mechanism? What exactly did this mean?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

There are some companies that Berkshire Hathaway owns that they will not sell no matter what the offered price might be.

Part 1: Why are the permanent companies so important to Berkshire Hathaway?

Part 2: What would you do if you were offered three times the value of a permanent company's price?

Part 3: Do you think it's a good idea to have permanent companies in a portfolio?

Essay Topic 2

Buffett and Munger thought it was better to monitor management as an investment strategy.

Part 1: How does management impact the way that a company works?

Part 2: Do you think management can be something that predicts financial stability?

Part 3: Why do you think Munger and Buffett looked at management to determine their investments?

Essay Topic 3

Buffett and Munger didn't use a strategic plan of acquisition, but rather compared opportunities against passive investments.

Part 1: Why do you think Buffett and Munger didn't have a plan for acquisitions?

Part 2: Do you think it's a better idea to have a plan when dealing with more extensive acquisition deals?

Part 3: How do you think Buffett and Munger's approach benefits them?

(see the answer keys)

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