ROBERT G. HAGSTROM is one of the best-known authors of investment books for general audiences. He has written nine books, including the New York Times bestselling The Warren Buffett Way and The Warren Buffett Portfolio: Mastering the Power of the Focus Investment Strategy. He is also the author of The NASCAR Way: The Business That Drives the Sport, The Detective and the Investor: Uncovering Investment Techniques from the Legendary Sleuths, and Investing: The Last Liberal Art. Robert is a graduate of Villanova University with a BA and MA and is a Chartered Financial Analyst. He lives with his family in Villanova, Pennsylvania. Visit Robert's website at www.RobertHagstrom.com. RUSSELL RHOADS, CFA, is an instructor for the Options Institute at the Chicago Board Options Exchange. He teaches about ninety classes a year and conducts webinars on behalf of the CBOE and a variety of brokerage firms. Rhoads's twenty-year trading career has included positions at a variety of trading firms and hedge funds. His background includes trading and analysis, and he is the author of the Wiley titles Trading VIX Derivatives, Candlestick Charting For Dummies, and Option Spread Trading. Rhoads graduated with an MS in finance from the University of Memphis and a master's certificate in financial engineering from the Illinois Institute of Technology.

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• Preface ixPart I QuestionsChapter One A Five-Sigma Event: The World’s Greatest Investor 3Multiple-Choice Questions 3Essay Questions 8Chapter Two The Education of Warren Buffett 9Multiple-Choice Questions 9Essay Questions 17Chapter Three Buying a Business: The Twelve Immutable Tenets 19Multiple-Choice Questions 19Essay Questions 31Chapter Four Common Stock Purchases: Nine Case Studies 35Multiple-Choice Questions 35Essay Questions 48Chapter Five Portfolio Management: The Mathematics of Investing 53Multiple-Choice Questions 53Essay Questions 64Chapter Six The Psychology of Investing 67Multiple-Choice Questions 67Essay Questions 73Chapter Seven The Value of Patience 77Multiple-Choice Questions 77Essay Questions 82Chapter Eight The World’s Greatest Investor 85Multiple-Choice Questions 85Essay Questions 95Part II AnswersChapter One A Five-Sigma Event: The World’s Greatest Investor 99Answers to Multiple-Choice Questions 99Essay Answers 102Chapter Two The Education of Warren Buffett 107Answers to Multiple-Choice Questions 107Essay Answers 112Chapter Three Buying a Business: The Twelve Immutable Tenets 119Answers to Multiple-Choice Questions 119Essay Answers 127Chapter Four Common Stock Purchases: Nine Case Studies 139Answers to Multiple-Choice Questions 139Essay Answers 148Chapter Five Portfolio Management: The Mathematics of Investing 163Answers to Multiple-Choice Questions 163Essay Answers 170Chapter Six The Psychology of Investing 181Answers to Multiple-Choice Questions 181Essay Answers 186Chapter Seven The Value of Patience 193Answers to Multiple-Choice Questions 193Essay Answers 196Chapter Eight The World’s Greatest Investor 201Answers to Multiple-Choice Questions 201Essay Answers 207About the Authors 213