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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. Ben Graham personified the market with the name ___________, to give it a more human side.

2. Buffett's criteria measured _________ expectations of the highest after-tax returns to maximize net worth in the long run.

3. What company did Buffett acquire in 1964, which he eventually grew into a large holding company?

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

5. Buffett and Munger invested based on company operating results and not on ____________.

Short Essay Questions

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

2. What was listed as the difference between a fallen angel and a junk bond?

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

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

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

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

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

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

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

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Inactivity in investing was seen as intelligent investing as well, even though nothing was being done during some of these periods.

Part 1: Why might inactivity be beneficial to investing?

Part 2: Do you think inactivity or action is more helpful to an investing strategy?

Part 3: What do you think your investing approach might look like? Active or inactive? Both?

Essay Topic 2

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 3

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?

(see the answer keys)

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