Electronics Production | May 05, 2009

Foxconn founder Terry Gou criticises Warren Buffet

Taiwanese tycoon Terry Gou has criticised Warren Buffet for his investment in China-based BYD.
Terry Gou is threatening to buy shares in Berkshire Hathaway, if Warren Buffet fails to answer 3 simple questions for him, TaiwanNews reports. This way, he would be able to ask them personally at next year's shareholder meeting.

Point of criticism
Warren Buffet's investment in BYD, whom Foxconn has an intellectual property dispute with. Foxconn accuses BYD of stealing commercial secrets and Hon Hai took BYD to court in Shenzhen, China, in 2006. In September 2008, Warren Buffett bought a 10% stake in BYD.

BYD is accused of hiring more that 400 staff away from Foxconn. The company was later able to snatch away orders from Nokia and Motorola that used to go to the Taiwan-based EMS-giant.

Terry Gou's questions
- Why does a U.S. business leader want to invest in a company stealing trade secrets?
- If he dared driving a car made by BYD to work each day, instead of just driving it to his company's shareholders meeting?
- What made Warren Buffett think that BYD possessed the professional knowledge to succeed in developing and selling electrical (hybrid) cars with profit?

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