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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. Popular theory at the time said that the market was totally efficient at _________ investment.

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

3. How much profit did the new holding of Berkshire make for Buffett and Munger?

4. The market was considered a business partner with incurable _______ problems, according to the book.

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 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?

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

3. Who was Mr. Market and where did Mr. Market come from, according to the book?

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

5. What is the content of this book often used for, according to the author?

6. 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?

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

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

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

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Buffett pointed out that just because the market was often efficient does not mean that it is always efficient.

Part 1: Why do you think the idea of an efficient market is something to consider?

Part 2: How do you think an efficient market can impact the outcome of a financial transaction?

Part 3: Do you believe that the market is designed to be efficient?

Essay Topic 2

Warren Buffett appeared to be a mild-mannered and modest person, unlike so many others in the financial market.

Part 1: Do you think that Buffett is the exception the rule that those with money are self-serving?

Part 2: Why do you think Buffett maintained the manner he did?

Part 3: How do you think Buffett is able to maintain his modest manner during his time at Berkshire Hathaway?

Essay Topic 3

Buffett and Munger saw the shareholders are partners in the company, not just as those who bought into the company.

Part 1: Do you think all shareholders should be seen as partners in their companies?

Part 2: How can a shareholder influence the way that that a company behaves or reacts in the business market?

Part 3: Why do you think it's necessary for there to be shareholders in modern day companies?

(see the answer keys)

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