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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. What was coined as the term for the amount of undiscovered embezzlement?

2. Buffett and Munger promised to provide sufficient additional _______ to evaluate true results.

3. The _______ doesn't feel poorer when the embezzler is getting richer.

4. What was the name of the bank that had substantial equity interest in Berkshire?

5. Buffett claimed in the book that most Berkshire shareholders will hang onto their shares for ____________.

Short Essay Questions

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

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

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

4. What did Buffett and Munger prefer to do when they invested in a company?

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

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

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

8. What happened as the result of Buffett following the advice of Ben Graham and David Dodd?

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

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

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

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 stated at several points that buying things at a fair price is a reasonable action to take.

Part 1: Do you think there is such a thing as a fair price?

Part 2: Who should be in charge of determining what a fair price might be?

Part 3: How do you determine what a fair price for an item or a service might be?

(see the answer keys)

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