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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. A __________ was something that Buffett and Munger believed was valuable to inform businesses owners of the year's business growth.

2. What were the name of the bonds that were issued during WWI?

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

4. Some Berkshire insurance subsidiaries used _______ with its greater returns than to use Treasury Bils.

5. How many owner-related business principles were listed in this section of the book by Buffett?

Short Essay Questions

1. 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?

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

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

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

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

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

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

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

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

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Buffett and Munger stated at several points that buying things at a fair price is a reasonable action to take.

Part 1: Do you think there is such a thing as a fair price?

Part 2: Who should be in charge of determining what a fair price might be?

Part 3: How do you determine what a fair price for an item or a service might be?

Essay Topic 2

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 3

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?

(see the answer keys)

This section contains 666 words (approx. 3 pages at 300 words per page) View a FREE sample