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. Many ended up taking Buffett and Munger ________ on faith because of the way that they reported.

2. Buffett realized that it was helpful to be _________ when others were fearful in the market.

3. The partners were also interested in firms that had extraordinary ________ talent exhibiting skillful executive achievement.

4. The goal of the partners was to maximize the real economic benefits, not just the number of ___________.

5. The satire talked about charging off ________ value to negative one million dollars so the company could convert depreciation cost to annual appreciation gain.

Short Essay Questions

1. What was the benefit of major business activities being grouped together?

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

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

4. What question emerged during the merger between Berkshire and Blue Chip in 1983?

5. 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?

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

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

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

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

10. What did Buffett say should happen to some earnings in dividends?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

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 2

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 3

The textile company grew from a simple company to one that was a multi-million dollar corporation over time.

Part 1: Do you think it's the dream of all companies to become multi-million dollar companies?

Part 2: Why do you think Buffett and Munger aspired to do more with the company they had?

Part 3: Would you rather stay as one company or try to grow bigger over time?

(see the answer keys)

This section contains 648 words (approx. 3 pages at 300 words per page) View a FREE sample