The Snowball audiobook cover - Warren Buffett and the Business of Life

The Snowball

Warren Buffett and the Business of Life

Alice Schroeder

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Money & InvestmentsBiography & Memoir

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The Snowball
Early Life & Influences+
Education & Mentorship+
Investment Philosophy+
Key Acquisitions+
Challenges & Crises+
Personal Life & Relationships+
Later Years & Philanthropy+

Quiz — Test Your Understanding

Question 1 of 10
Why did Warren Buffett initially turn to numbers and statistics as a child?
  • A. To prepare for a lucrative career on Wall Street like his father.
  • B. To find comfort and an escape from his unpredictable and abrasive mother.
  • C. To help his father's stockbroker business survive the Great Depression.
  • D. To win a mathematics scholarship to the University of Nebraska.
Question 2 of 10
Who was Buffett's influential teacher at Columbia University, and what key investment concept did he teach?
  • A. Charlie Munger, who taught him to invest in high-growth technology stocks.
  • B. David Dodd, who taught him the importance of public speaking and networking.
  • C. Benjamin Graham, who taught him to look for undervalued 'cigar butt' businesses.
  • D. John Gutfreund, who taught him the mechanics of hostile takeovers and junk bonds.
Question 3 of 10
What does the 'snowball' metaphor refer to in Buffett's early investment strategy?
  • A. Continuously reinvesting earnings into undervalued stocks so the wealth grows larger over time.
  • B. Accumulating a large number of diverse companies to protect against market crashes.
  • C. Freezing assets during economic downturns to prevent financial loss.
  • D. Starting with high-risk investments and gradually shifting to safer government bonds.
Question 4 of 10
How did Charlie Munger significantly influence Buffett's investment approach?
  • A. He convinced Buffett to invest heavily in the emerging dot-com market.
  • B. He taught Buffett how to use junk bonds to execute corporate takeovers.
  • C. He encouraged Buffett to move beyond 'cigar butt' stocks and buy entire, higher-quality businesses.
  • D. He advised Buffett to short-sell companies that were facing public scandals.
Question 5 of 10
Which of the following best describes Buffett's initial experience with Berkshire Hathaway?
  • A. It was a highly profitable technology company that launched his status as a billionaire.
  • B. It was a struggling textile manufacturer that became a burden, though he used it to purchase winning stocks.
  • C. It was an insurance company that he saved from bankruptcy with the help of Charlie Munger.
  • D. It was a newspaper business that won a Pulitzer Prize under his management.
Question 6 of 10
Why did Buffett avoid investing in the booming technology companies of the late 1960s and the 1990s?
  • A. He had a strict rule against investing in companies whose products or services he didn't fully understand.
  • B. He believed technology companies were inherently unethical and had too many 'human problems.'
  • C. The SEC had banned his partnership from investing in the NASDAQ following a disclosure violation.
  • D. He was advised by his close friend Bill Gates that the technology sector was a massive financial bubble.
Question 7 of 10
What major crisis did Buffett help manage at Salomon Brothers in the early 1990s?
  • A. A scandal involving seawater-filled soybean oil tanks.
  • B. An illegal bidding scandal in government auctions by an employee.
  • C. An SEC investigation into the company's tangled web of subsidiary holdings.
  • D. A hostile takeover attempt by Santa Barbara Financial Company.
Question 8 of 10
How did Buffett's involvement with the Omaha Sun lead to a Pulitzer Prize?
  • A. The paper published an investigative piece on the illegal practices of Wall Street brokers.
  • B. The paper uncovered that a local boys' shelter was hoarding millions of dollars in donations.
  • C. The paper exposed a government scandal involving the certification of soybean oil.
  • D. The paper successfully sued a rival publisher for unlawful free newspaper distribution.
Question 9 of 10
After the passing of his wife Susie, what did Buffett declare was the ultimate 'secret to life'?
  • A. Amassing enough wealth to solve the world's most pressing social issues.
  • B. Building a business empire that outlasts your own lifetime.
  • C. Being loved by as many people as possible among those you want to have love you.
  • D. Never losing your initial investment capital.
Question 10 of 10
What is the '20 Punches' approach to investing recommended in the book's actionable advice?
  • A. Diversifying a portfolio across 20 different global industries to minimize risk.
  • B. Holding a stock for at least 20 years before deciding to sell it.
  • C. Treating investments as if you only have 20 opportunities in a lifetime to encourage extreme diligence.
  • D. Reviewing a company's financial statements 20 times before committing to a purchase.

The Snowball — Full Chapter Overview

The Snowball Summary & Overview

"By age eleven he’d saved up $120, which was a whole lot of money in 1941. He used that money to make his first investment. He bought six shares of the company Cities Service Preferred – three for him and three for his sister Doris."

The Snowball (2008) offers a revealing look at the life and times of one of modern America’s most fascinating men: Warren Buffett. Find out how this shy and awkward man earned his first million dollars and how following a few fundamental rules enabled him to become the world’s wealthiest man.

This is a Blinkist staff pick

“Warren Buffet is one of those people who seems to have a magic touch. It’s almost as if he’s aware of certain universal secrets that nobody else is privy to! I love learning more about what made him so successful (he memorized textbooks?!) and trying to figure out what makes him tick.” – Ben S., Head of Audio at Blinkist

Who Should Listen to The Snowball?

  • Investors
  • Philanthropists
  • Anyone looking for an inspiring story

About the Author: Alice Schroeder

Alice Schroeder began her career as an insurance analyst before taking Warren Buffett’s suggestion and becoming a full-time writer. She is currently a columnist for Bloomberg News. The Snowball was named one of the ten best books of 2008 by Time magazine.

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