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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 and Munger promise to never ________ unless they are selling at a market price well below intrinsic business value.

2. Warrants exercised for a penny par add ________ to credit capital surplus, according to the book.

3. Accounting for the purchase of a business required allocating the ________ first to the fair value of net assets.

4. Buffett and Munger described the acquisition process as being akin to finding a ________.

5. Buffett was often frustrated with _________, even though it was valuable for business practices.

Short Essay Questions

1. What was done in order to minimize any loss from accounting adjustments during the US Steel transactions?

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

3. What threatened the global competitiveness of major American industries, according to the book?

4. What could Berkshire shareholders be assured of, according to Buffett in the book?

5. What were the two categories of most interest for Munger and Buffett when they wanted to add to their holdings?

6. What happened as the result of the fictional accounting actions by US Steel?

7. What were the three main thing that shareholders always knew about Munger and Buffett?

8. What was the strategy that Buffett employed in order to acquire businesses, after learning the lesson from the golf pro?

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

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

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 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

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?

(see the answer keys)

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