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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. Major business activities grouped together aided _____ by providing data in a more useful form.

2. What was the piece of advice that Buffett took to heart from the athlete?

3. The partners were interested firms that are adapted to ______ times that could readily increase prices and scale up to a large volume with more capital.

4. In 1992, what did the Berkshire per share stock price increase past?

5. Berkshire shareholders can be assured that the company _______ statements are accurate.

Short Essay Questions

1. Why would a company want to repurchase their own shares, according to Buffett?

2. To what other experience did Buffett compare the process of acquiring a business?

3. What was the purpose of Buffett and Munger focusing on buying up 100% of a company and the investment must use a lot of capital?

4. What did Buffett expect to owners of stock to do when he creates a principle that earnings should be retained to the extent each retained dollar creates at least one dollar of market value for owners?

5. What was the expected benefit for the Berkshire NYSE listing, according to the book?

6. What did Buffett try to do in order to avoid problems with the two contagious diseases in the investment community?

7. How did Buffett avoid diluting share value to existing shareholders?

8. What was the simple rule that Buffett followed when it came to exchange of stock during a merger?

9. What was the piece of advice from a golf pro that Buffett takes to heart in his acquisition strategy?

10. Why did many executives argue about the costs of stock options and why they should be ignored?

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 use a strategic plan of acquisition, but rather compared opportunities against passive investments.

Part 1: Why do you think Buffett and Munger didn't have a plan for acquisitions?

Part 2: Do you think it's a better idea to have a plan when dealing with more extensive acquisition deals?

Part 3: How do you think Buffett and Munger's approach benefits them?

Essay Topic 3

In order to buy bonds and stock in a company, Buffett and Munger required that companies have a firm management style.

Part 1: How might you define the idea of a firm management style?

Part 2: What are some modern companies today that have a good management approach?

Part 3: Do you think a company can be a success without a strong management team?

(see the answer keys)

This section contains 693 words (approx. 3 pages at 300 words per page) View a FREE sample