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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. Many stocks had a _______, like Coca-Cola, but none have the same market share.

2. Buffett and Munger bought _________ companies the same way they might buy private companies.

3. How much profit did the new holding of Berkshire make for Buffett and Munger?

4. How many primary holdings were permanent in the time of Buffett and Munger?

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

Short Essay Questions

1. What were two of the benefits of zero-coupon bonds, as listed by Berkshire in their promotions?

2. What might a CEO do if they were unlikely to dispose of their successful operating business, according to Buffett?

3. What is the content of this book often used for, according to the author?

4. What was the definition of the idea of risk arbitrage, according to the book?

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

6. What did Buffett decide to do in order to create a meeting in which business owners would be informed about the year's business growth and development?

7. What was the long-term economic goal of the directors investing in the Berkshire company?

8. What did Buffett have to say about the idea of annual meetings for shareholders and other business managers?

9. What would business contraction cause, though Buffett says this was also an opportune time for investment?

10. What did Buffett fear about investing in companies that were located in California?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

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 2

Buffett and Munger stated at several points that buying things at a fair price is a reasonable action to take.

Part 1: Do you think there is such a thing as a fair price?

Part 2: Who should be in charge of determining what a fair price might be?

Part 3: How do you determine what a fair price for an item or a service might be?

Essay Topic 3

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?

(see the answer keys)

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