View a FREE sample

This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

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

2. What were the name of the bonds that Buffett seeks to promote through Berkshire?

3. Buffett is proud that ____% of the shares outstanding at the end of each year were held by the same shareholders.

4. Buffett and his partner preferred to buy a company at a fair price at _______% interest.

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

Short Essay Questions

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

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

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

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

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

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

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

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

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

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

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 2

Buffett stated that he finds some annual meetings to be useless to those who attend them and to those who run them.

Part 1: Do you think there is value in the annual meetings?

Part 2: Why do you think Buffett believes the annual meetings to be fairly useless?

Part 3: What do you think could be done in order to make annual meetings more useful to those who attend?

Essay Topic 3

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?

(see the answer keys)

This section contains 635 words (approx. 3 pages at 300 words per page) View a FREE sample