Investment (Warren Buffet Questions and Answers) 2

Question 1

What is the name of the holding company Warren Buffett has run since 1965?

Accepted Answer

Berkshire Hathaway

Answer

Buffett took control of textile maker Berkshire Hathaway in 1965 and transformed it into a diversified holding company.

Question 2

Buffett's mentor, who wrote 'The Intelligent Investor,' was:

Accepted Answer

Benjamin Graham

Answer

Benjamin Graham taught Buffett at Columbia and is considered the father of value investing.

Question 3

What term describes Buffett's preference for companies with a durable competitive advantage?

Accepted Answer

Economic moat

Answer

Buffett popularized the 'moat' metaphor for advantages that protect a company's long-term profits.

Question 4

Which beverage company is one of Berkshire Hathaway's most famous long-term holdings?

Accepted Answer

Coca-Cola

Answer

Berkshire began buying Coca-Cola stock in 1988 and has held it for decades.

Question 5

Buffett famously advises investors to be fearful when others are ___ and greedy when others are ___.

Accepted Answer

greedy; fearful

Answer

This contrarian maxim encourages buying during panics and caution during euphoria.

Investment Practice Test