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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. Two super contagious diseases in the investment world included _______ and greed, according to the book.

3. What is NOT one of the features that Buffett and Munger looked for in acquisition opportunities?

4. While Munger and Buffett were excited when they are in the process of acquiring a new business, they were also _________.

5. ___________ were used to pay salaries and wages, which eliminated payroll with increased employee compensation.

Short Essay Questions

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

2. What did Buffett want to do with the Berkshire stock on the NYSE?

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

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

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

6. What was the result of information that is necessary to report to an investor or shareholder?

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

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

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

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

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

Buffett and Munger wanted fair and accurate reporting from all of their company CEOs at all times.

Part 1: Do you think it's possible to have fair and accurate reporting at all times?

Part 2: Why do you think it's important for CEOs to be accurate in their reporting?

Part 3: How do you think Buffett and Munger handled those CEOs who were not able to report on their company's status?

Essay Topic 3

Mr. Market was a fun character made up by Graham to teach marketing principles.

Part 1: Why do you think Mr. Market is a good representation of the modern day investor?

Part 2: Do you think Mr. Market is the same today as he was at the time of Graham's teachings?

Part 3: How might you compare Mr. Market to yourself in terms of how you would approach investing and financial decisions?

(see the answer keys)

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