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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 was the title of Buffett in relation to his company?

3. How many primary holdings were permanent in the time of Buffett and Munger?

4. Buffett believed that many annual ________ were a waste of time for the shareholders and the management.

5. A bond is _______ with regular payment of interest and repayment of principle.

Short Essay Questions

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

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

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 long-term economic goal of the directors investing in the Berkshire company?

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

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

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 were some of the issues that could come up within an annual meeting, which made Buffet want to avoid these meetings?

10. What was the definition of the idea of risk arbitrage, according to the book?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Buffett and Munger didn't like to split their stock, even though they were asked to do so many times.

Part 1: Why do Buffett and Munger decide not to split their stock?

Part 2: Do you think Buffett and Munger made the right decision to keep their stock?

Part 3: Do you think Munger and Buffett are fair to their shareholders?

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 didn't like to invest in banking because of the leverage involved. Banks were too difficult as investments most of the time.

Part 1: Do you think that banks can be good investment choices?

Part 2: Why do you think it might be better to stay away from banks as investments?

Part 3: How do you think a bank might become a better investment for a larger company?

(see the answer keys)

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