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

2. What did a bondholder have to do with their bond if they decided to cash it in early?

3. The long-term economic goal was to maximize per-share average annual rate of gain at ______% of the intrinsic business value.

4. Many stocks had a _______, like Coca-Cola, but none have the same market share.

5. What was the stock market value of the company in #49 when it was first purchased by Buffett?

Short Essay Questions

1. What were the five different categories from which Buffett can select his investments?

2. What might a CEO do if they were unlikely to dispose of their successful operating business, according to Buffett?

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

4. What did Buffett and Munger commit to providing to their 300,000 shareholders?

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

6. How did Buffett's criteria for buying companies and maintaining holdings help to maximize net worth in the long run?

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

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

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

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Fear and greed were described as being two super contagious diseases in the investment community.

Part 1: Why do you think there is a lot of fear in the investment community?

Part 2: How do you think greed and fear might impact the way a person invests?

Part 3: Do you think that you would be swayed more by fear or by greed when investing? Why?

Essay Topic 2

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?

Essay Topic 3

Buffett and Munger supported acquiring firms only when the added intrinsic value to their market shares.

Part 1: Why do you think Buffett and Munger only wanted to acquire firms that added value?

Part 2: Do you think modern day companies limit the types of companies they acquire?

Part 3: How do you think Berkshire Hathaway might be been different had they simply bought any company that was up for sale?

(see the answer keys)

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