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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 the name of the bank that had substantial equity interest in Berkshire?

2. Most Berkshire _______ had their net worth invested primarily in the company.

3. What was NOT one of the elements listed in the elements of arbitrage in the book?

4. Which business did Munger and Buffett decide to close, despite their best efforts?

5. Buffett and Munger saw themselves as general _______ responsible to other shareholders.

Short Essay Questions

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

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

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

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

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

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

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

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

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

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

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 2

Warren and Charlie likened the process of acquiring a business to that of finding a spouse.

Part 1: Why is it exciting to acquire another company?

Part 2: What are some of the reasons for acquiring another company?

Part 3: Do you think companies need to buy other companies in order to be successful?

Essay Topic 3

Some bonds started out as junk, but ended up being angel bonds, according to one of the essays in this book.

Part 1: Do you think that investing is a guessing game?

Part 2: How do you think a person can make the best possible decision about their investments?

Part 3: Why do you think some junk investments might end up being better investments than they seemed?

(see the answer keys)

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