HEXAGRAM 01 ORIGINAL, INTERPRETATION AND CASES

HEXAGRAM 01 – Chien - The Creative

Above THE CREATIVE, HEAVEN

Below THE CREATIVE, HEAVEN

The first hexagram is made up of six unbroken lines.

These unbroken lines stand for the primal power, which is

· light giving,

· active,

· strong, and of

· the spirit.

The hexagram is consistently strong, in character, and

since it is without weakness,

its essence is power or energy.

Its image is heaven.

Its energy

· is represented as unrestricted by any fixed conditions in space and

· is therefore conceived of as motion.

Time is regarded as the basis of this motion.

Thus the hexagram includes also

· the power of time and

· the power of persisting in time, that is, duration.

The power represented by the hexagram is to be interpreted in a dual sense - in terms of

· its action on the universe and of

· its action on the world of men.

· In relation to the universe, the hexagram expresses the strong, creative action of the Deity.

· In relation to the human world, it denotes the creative action of the holy man or sage, of the ruler or leader of men, who through his power awakens and develops their higher nature. 1

THE JUDGMENT

THE CREATIVE works sublime success,

Furthering through perseverance. 2

According to the original meaning, the attributes (sublimity, potentiality of success, power to further, perseverance) are paired.

When an individual draws this oracle, it means

· that success come to him from the primal depths of the universe and

· that everything depends upon his seeking his happiness and that of others in one way only, that is, by perseverance in what is right.

The specific meanings of the four attributes became the subject of speculation at an early date.

The Chinese word here rendered by “sublime” means literally “head,” “origin,” “great.”

This is why Confucius says in explaining it:

“Great indeed is the generating power of the Creative; all beings owe their beginning to it. This power permeates all heaven. 3 For this attribute inheres in the other three as well.

The beginning of all things lies still in the beyond in the form of ideas that have yet to become real.

But the Creative furthermore has power to lend form to these archetypes of ideas.

· This is indicated in the word success, and

· the process is represented by an image from nature: “The clouds pass and the rain does its work, and all individual beings flow into their forms.” 4

Applied to the human world, these attributes show the great man the way to notable success:

“Because he sees with great clarity causes and effects, he

· completes the six steps at the right time and

· mounts toward heaven on them at the right time, as though of six dragons.”

The six steps are the six different positions given in the hexagram,

which are represented later by the dragon symbol.

Here it is shown that the way to success lies in

· apprehending understanding and

· giving actuality to the way of the universe (Tao), which, as a law running, through end and beginning, brings about all phenomena in time.

Thus each step attained forthwith becomes a preparation for the next.

Time is no longer a hindrance but the means of making actual what is potential.

The act of creation having found expression in the two attributes - sublimity and success,

the work of conservation is shown to be a continuous actualization and differentiation of form.

This is expressed in the two terms

· “furthering” (literally, “creating that which accords with the nature of a given being”) and

· “persevering” (literally, “correct and firm”).

“The course of the Creative alters and shapes beings until each attains its true, specific nature, then

it keeps them in conformity with the Great Harmony.

Thus does it show itself to further through perseverance.”

In relation to the human sphere, this shows how

the great man brings peace and security to the world through his activity in creating order:

“He towers high above the multitude of beings, and all lands are united in peace.”

Another line of speculation goes still further in separating the words “sublime,” “success,” “furthering” “perseverance,” and parallels them with the four cardinal virtues in humanity.

1)To sublimity, which, as the fundamental principle, embraces all the other attributes, it links love.

2) To the attribute success are linked the mores, which regulate and organize the expressions of love and thereby make them successful. 5

3) The attribute furthering is correlated with justice, which creates the conditions in which each receives that which accords with his being, that which is due him and which constitutes his happiness.

4) The attribute perseverance is correlated with wisdom, which discerns the immutable laws of all that happens and can therefore bring about enduring conditions.

These speculations, already broached in the commentary called Wen Yen, 6 later formed the bridge connecting the philosophy of the “five stages (elements) of change,” as laid down in the Book of History (Shu Ching) with the philosophy of the Book of Changes, which is based solely on the polarity of positive and negative principles. In the course of time this combination of the two systems of thought opened the way for an increasingly intricate number symbolism. 7

THE IMAGE

The movement of heaven is full of power.

Thus the superior man makes himself strong and untiring.

Since there is only one heaven, the doubling of the trigram Ch’ien, of which heaven is the image, indicates the movement of heaven.

One complete revolution of heaven makes a day, and the repetition of the trigram means that each day is followed by another.

This creates the idea of time.

Since it is the same heaven moving with untiring power, there is also created the idea of duration both in and beyond time, a movement that never stops nor slackens, just as one day follows another in an unending course.

This duration in time is the image of the power inherent in the Creative.

With this image as a model,

the sage learns how best to develop himself so that his influence may endure.

He must make himself strong in every way,

by consciously casting out all that is inferior and degrading.

Thus he attains that tirelessness,

which depends upon consciously limiting the fields of his activity.

THE LINES

Nine at the beginnings means:

Hidden dragon. Do not act.

In China the dragon has a meaning altogether different from that given it in the Western world.

The dragon is a symbol of the electrically charged, dynamic, arousing force that manifests itself in the thunderstorm.

· In winter this energy withdraws into the earth;

· in the early summer it becomes active again, appearing in the sky as thunder and lightning.

As a result the creative forces on earth begin to stir again.

Here this creative force is still hidden beneath the earth and therefore has no effect.

In terms of human affairs, this symbolizes a great man who is still unrecognized.

Nonetheless he remains true to himself.

He does not allow himself to be influenced by outward success or failure, but confident in his strength, he bides his time.

Hence it is wise for the man who consults the oracle and draws this line to wait in the calm strength of patience.

The time will fulfill itself.

One need not fear lest strong will should not prevail;

the main thing is not to expend one’s powers prematurely in an attempt to obtain by force something for which the time is not yet ripe.

Nine in the second place means:

Dragon appearing in the field.

It furthers one to see the great man.

Here the effects of the light-giving power begin to manifest themselves.

In terms of human affairs, this means that the great man makes his appearance in his chosen field of activity.

As yet he has no commanding position but is still with his peers.

However, what distinguishes him from the others is

· his seriousness of purpose,

· his unqualified reliability, and

· the influence he exerts on his environment without conscious effort.

Such a man is destined

· to gain great influence and

· to set the world in order.

Therefore it is favorable to see him.

Nine in the third place means:

All day long the superior man is creatively active.

At nightfall his mind is still beset with cares.

Danger.

No blame.

A sphere of influence opens up for the great man.

His fame begins to spread.

The masses flock to him.

His inner power is adequate to the increased outer activity.

There are all sorts of things to be done, and when others are at rest in the evening, plans and anxieties press in upon him.

But danger lurks here at the place of transition from lowliness to the heights.

Many a great man has been ruined because the masses flocked to him and swept him into their course. Ambition has destroyed his integrity.

However, true greatness is not impaired by temptations.

He who remains in touch with the time that is dawning, and with its demands, is prudent enough to avoid all pitfalls, and remains blameless.

Nine in the fourth place means:

Wavering flight over the depths.

No blame.

A place of transition has been reached, and free choice can enter in.

A twofold possibility is presented to the great man:

· he can soar to the heights and play an important part in the world, or

· he can withdraw into solitude and develop himself.

· can go the way of the hero or

· that of the holy sage who seeks seclusion.

There is no general law to say which of the two is the right way.

Each one in this situation must make a free choice according to the inner law of his being.

If the individual acts consistently and is true to himself, he will find the way that is appropriate for him.

This way is right for him and without blame.

Nine in the fifth place means:

Flying dragon in the heavens.

It furthers one to see the great man.

Here the great man has attained the sphere of the heavenly beings.

His influence spreads and becomes visible throughout the whole world.

Everyone who sees him may count himself blessed.

Confucius says about this line:

Things that accord in tone vibrate together.

Things that have affinity in their inmost natures seek one another.

Water flows to what is wet, fire turns to what is dry.

Clouds (the breath of heaven) follow the dragon; wind (the breath of earth) follows the tiger.

Thus the sage arises, and all creatures follow him with their eyes.

What is born of heaven feels related to what is above.

What is born of earth feels related to what is below.

Each follows its kind.

Nine at the top means:

Arrogant dragon will have cause to repent.

When a man seeks to climb so high that he loses touch with the rest of mankind,

he becomes isolated, and this necessarily leads to failure.

This line warns against titanic aspirations that exceed one’s power.

A precipitous fall would follow.

When all the lines are nines, it means:

There appears a flight of dragons without heads.

Good fortune.

When all the lines are nines, it means that the whole hexagram is in motion and changes into the hexagram K’un, THE RECEPTIVE, whose character is devotion.

The strength of the Creative and the mildness of the Receptive unite.

· Strength is indicated by the flight of dragons,

· mildness by the fact that their heads are hidden.

This means that mildness in action joined to strength of decision brings good fortune.

1. (The hexagram is assigned to the fourth month, May- June, when the light-giving power is at its zenith, i.e., before the summer solstice has marked the beginning of the year’s decline. (The German text reads “April-May”; this is obviously a slip, for the first month of the Chinese lunar year extends approximately from the beginning of February to the beginning of March. New Year is a variable date, falling a-round February 5. Two or three other slips of this sort occurring later in the book have been similarly corrected, but without special mention.)

2. (The German word used here is fordernd, literally rendered by “furthering.” It occurs again and again as a key word in Wilhelm’s rendering of the Chinese text. To avoid extreme awkwardness, the phrase “is favorable” is occasionally used as an alternative.]

3. (This quotation and those following are from commentary material on this hexagram appearing in bk. 111. It will be noted here, as well as in a number of other instances, that the wording of the passages is not identical in the two books.)

4. Cf . Gen. 2: 1 ff., where the development of the different creatures is also attributed to the fall of rain.

5. (”Mores” is the word chosen to render the German word Sitte, when the latter refers, as in the present instance, to what the Chinese know as li. However, neither “mores” nor any other available English word, such as “manners” or “customs,” conveys an adequate idea of what li stood for in ancient China, because none of them necessarily denotes anything more than behavior growing out of and regulated by tradition. The ideas for which Li stands seem to have had their origin in a religious attitude to life and in ethical principles developing out of that attitude. On the religious side Li meant the observance with true piety of the ritual through which the “will of heaven” was interpreted and made to prevail on earth. On the moral side it meant the sense of propriety - understood to be innate in man - that, through training, makes possible right relationships in personal life and in society. Li was the cornerstone upon which Confucius built in his effort to bring order out of chaos in his era (see The Sacred Books of the East, XXVII: The Li Ki). Obedience to the code of Li was entirely self-imposed as regards the “superior man,” who in feudal times was always a man of rank. The conduct of the “inferior man” - the lower-class individual - was governed by law.]

6. [See p. 259. The text of the Wen Yen (Commentary on the Words of the Text) appears in bk. III.]

7. The Creative causes the beginning and begetting of all beings, and can therefore be designated as heaven, radiant energy, father, and ruler. It is a question whether the Chinese personified the Creative, as the Greeks conceived it in Zeus. The answer is that this problem is not the main one for the Chinese. The divine-creative principle is supra-personal and makes itself perceptible only through its all-powerful activity. It has, to be sure, an external aspect which is heaven, and heaven, like all that lives, has a spiritual consciousness, God, the Supreme Ruler. But all this is summed up as the Creative.

8. The lines are counted from the bottom up, i.e., the lowest is taken as the first, If the person consulting the oracle draws a seven, this is important in relation to the structure of the hexagram as a whole, because it is a strong line, but inasmuch as it does not move (change) it has no meaning as an individual line. On the other hand, if the questioner draws a nine, the line is a moving one, and a special meaning is attached to it; this must be considered separately. The same principle applies in respect to all the other strong lines (and also as regards moving and nonmoving weak lines, i.e., sixes and eighties). The two lowest lines in each hexagram stand for the earth, the two in the middle for the world of man, and the upper two for heaven. (Further details as to the meaning of the nines and sixes are given on P. 722.)

9. (The upper trigram is considered to be “outside,” the lower “inside” (see P. 357). This distinction underlies the constant juxtaposition, to be observed throughout bks. I and III, of inner, mental states and external actions or events, of subjective and objective experiences. From this also arise the frequent comparisons between ability and position, form and content, outer adornment and inner worth.)

10. (The circle indicates that this line is a governing ruler of the hexagram. Constituting rulers are marked by a square. For explanation of governing and constituting rulers, see P- 364..)

01 - THE CREATIVE

MANAGERIAL ISSUE:

The CEO – managing the corporation’s Creative period.

This Hexagram represents a CEO who has been touched by Heaven and granted its creative powers.

The I Ching uses an image from nature to represent such creative powers:

· “The clouds pass and the rain does its work.

The world will call him a visionary, one who has the capacity to transform others with his creative power and bring the best out of everyone he works with.

To such a CEO, who has creativity and tenacity, time is no longer a concern because he knows he will accomplish his goal and will bring peace and security to the world thanks to his four basic characteristics: Love, Morality, Justice and Wisdom.

· The I Ching says: (his aim is) to develop himself so that his influence may endure. He must make himself strong in every way, by consciously casting out all that is inferior and degrading. Thus he attains that tirelessness, which depends upon consciously limiting the fields of his activity.

For the CEO, this Hexagram represents a successful corporation at its very beginnings. This is the Hexagram of Steven Jobs and Apple of Bill Gates and Microsoft, of Larry Ellison and Oracle. You would have drawn this Hexagram if you had been lucky enough to consult the I Ching about Apple, Microsoft, or Oracle years ago when they were starting their operations. This Hexagram also represents companies such as Xerox, Polaroid, Home Depot, Cisco, in their beginnings, as well as the new ones such as Google.

For the investor, this Hexagram represents the beginning of a brilliant idea, as well as a very profitable one. This idea will definitely take material form, becoming a very successful corporation, because not only is it an idea which time has come, but what is most important is that the man behind it has the Mandate from Heaven.

When talent and perseverance unite with the mandate of Heaven, the world has a winner.

MANAGERIAL LESSON:

The Superior CEO must:

1) Follow Heaven’s mandate. Nothing can stop the CEO when his time and place has come. The I Ching (like the Bible) tells us there is a time and a place for everything. And this corporation is an idea which time and place has come. Even though the founders of the corporation might appear as amateurs, like Jobs, Gates or Ellison when they started, they are really guided by an invisible and heavenly hand. Thus, nothing can stop this idea from becoming a reality and nothing can stop this stock from growing.

2) Follow the rule: “Do what you love and the money will follow”. This takes special significance when the creative forces of the universe are the driving force behind their idea.

The Superior CEO does:

a) What he enjoys

b) What comes natural

c) What he believes to be right.

3) Be passionate. His passion might make him appear as aggressive and tenacious, but it does not matter. He must show there can be no doubt he will carry out his ideas.

4) Be a visionary. The creators of this product are men of vision because they can see into the future. The I Ching places great importance in seeing or visualizing an idea in as much detail as possible well before the execution of the idea, both in terms of causes and effects, and the subsequent causes and effects.

The I Ching would say these are very special men. People like Jobs, Gates or Ellison are indeed great men. And they should be seen as such by the investor who wants to be successful.

They are special because they are men of:

1) Principle. As strange as it may seem to the cynics of this world and even to themselves, Jobs, Gates and Ellison are men of principles. This is usually the case with those who are touched by such creative forces.

2) Conscience. What really matters to them is not the material, which they know will inevitably take form, but rather the ideas themselves. For only the ideas are everlasting, while matter will eventually be transformed.

3) Tenacity. It is interesting to note, how the I Ching defines tenacity or duration, which by the way has nothing to do with clinching your teeth, but basically to follow in time a series of steps one after the other. To be tenacious it is always best to concentrate on the next step.

Time is regarded as the basis of this motion.

Thus the hexagram includes also

the power of time and

the power of persisting in time, that is,

duration.

4) Humility, in spite of their apparent arrogance. They are humble because they reward merit, and put merit above all things rather than friendship or nepotism. Microsoft was famous for paying its employees with stock options, thus the employees felt they had ownership in the corporation. This policy made millionaires out of thousands of its employees.

5) Generosity. They are generous men, as unbelievable as it may sound.

Bill Gates has proven that you win when you are generous:

First, when IBM was developing the 5150PC, they came to the newly born Microsoft looking for an operating system. Gates, in a truly generous act, recommended Digital Research whose CEO, Gary Kindall, would eventually turn IBM down. As FATE would have it, Gates and Allen realized what truly was at stake, bought Seattle Computer Products’ X86-compatible OS, repackaged it as DOS and sold it to IBM. Gates had the Mandate of Heaven. Kindall did not.

Second, in another truly generous act, Gates proposed that Apple make its disk drives compatible with DOS so IBM PC users could more readily swap data with the Mac. Gates also proposed early on that Apple out-license its friendly operating system to "clone" computer makers. The theory was that Apple could broaden its market share in the way IBM PC clones had popularized DOS. But Apple’s CEO John Sculley rejected it. Scully did not have the Mandate of Heaven. Any reasonable investor would have asked before investing in Apple at that time, what does a manager like Scully coming from a bottling company like Pepsi knows about running a computer company? Those who chose Scully as CEO were the ones responsible for the near destruction of Apple. It took Job’s return to bring back Apple to its original greatness.

Third, in another generous act, Gates continued to support the Mac software in spite of the look and feel suit, which Apple brought against Microsoft. And

Fourth, he helped saved Apple by injecting US$ 150m into Apple when it was about to go bankrupt.

What the truly great CEO (man) knows is that to be good to others is to be good to one self.

In general, these CEOs are special men because they:

· Live by a strict code of ethics, which is to make the best product available to the public not matter what the effort.

· Are strict in rewarding those who produce results and firing those who don't, and thus will always keep around them the most talented of the industry, and

· Truly enjoy what they do, so much so that in the beginning they did it for fun and they might have continued doing it for fun were it not so profitable. How could a CEO get tired or exhausted if he is having fun?

Bill Gates knew that Windows would take material form, because it was destined to do so, and because he had plenty of time and perseverance. Microsoft had excellent ideas and a very creative Research and Development department. It also had the necessary human resources, even though not necessarily plentiful equity to start with, to carry out their ideas, and both the owners and the managers were willing to work hard to achieve success. They also had the required elements for success such as: a passion for the ideas, a proper corporate culture, even if small, and respect and commitment to compensate merit, and know-how.

It is crucial to note, however, that Jobs, Gates and Ellison are subject to the law of cycles. Eventually CEO will grow arrogant, overreach and fail by exposing the corporation to titanic aspirations that exceed one’s power.

The I Ching warns the CEO:

Nine at the top means:

Arrogant dragon will have cause to repent.

When a man seeks to climb so high that he loses touch with the rest of mankind, he becomes isolated, and this necessarily leads to failure.

This line warns against titanic aspirations that exceed one’s power.

A precipitous fall would follow.

What went wrong? The CEO forgot one of the main principles:

The I Ching advices the CEO:

· He

· must make himself strong in every way, by consciously casting out all that is inferior and degrading. Thus

· he

· attains that tirelessness, which depends upon consciously limiting the fields of his activity.

INVESTMENT ADVICE:

This CEO has been blessed with a flux of Ch'i, or heavenly beneficial rain. The wise investors should take advantage of this flow of Ch'i.

· The I Ching says, "The power represented by the hexagram is to be interpreted in a dual sense - in terms of its action on the universe and of its action on the world of men. In relation to the universe, the hexagram expresses the strong, creative action of the Deity. In relation to the human world, it denotes the creative action of the holy man or sage, of the ruler or leader of men, who through his power awakens and develops their higher nature.'

This is one of the strongest and most promising of the Hexagrams. This is definitely a growth stock. It represents one of the highest returns as an investment. The I Ching says that this Hexagram "stands for the primal power, which is light giving, active, strong, and of the spirit."

For the typical investor, it requires a great deal of courage to hold this investment in time; nevertheless, it is worth it because the value of the stock will increase many times in value. It could produce returns of 10, 15 or even 20 times the original investment, or 20 baggers, as Peter Lynch would call them.

· The I Ching says "When an individual draws this Oracle, it means that success come to him from the primal depths of the universe and that everything depends upon his seeking his happiness and that of others in one way only, that is, by perseverance in what is right"

This Hexagram is also a test for the investor to exercise patience. This Hexagram represents an excellent investment in time. For the investor, this Hexagram requires time and patience to see it come to fruition. Here you have the ideas of a truly creative man, a genius, and a visionary who sees the future and how the future should be. The investor must rise to the occasion and match his patience with the CEO’s talent. He must be as patient with this investment as the creator of the corporation is talented.

Few investors are visionaries. This Hexagram represents companies such as Apple, Microsoft and Oracle in their beginnings. Few investors had the vision to know from the very beginning that these products would have great demand. Yet, those investors who bought these stocks in the beginning and were willing to persevere had very high returns.

For the investor, the Creative represents in general terms a favorable Time-Space to invest.

By itself (no lines), the Creative Time-Space points to Success provided the CEO

· Limits his field of activity,

· Tries not to climb so high that he loses touch with the rest of mankind,

· Keeps away from titanic aspirations that exceed his power.

THE CREATIVE works sublime success,

Furthering through perseverance.

According to the original meaning, the attributes (sublimity, potentiality of success, power to further, perseverance) are paired. When an individual draws this Oracle, it means that success come to him from the primal depths of the universe and that everything depends upon his seeking his happiness and that of others in one way only, that is, by perseverance in what is right.

The specific meanings of the four attributes became the subject of speculation at an early date. The Chinese word here rendered by “sublime” means literally “head,” “origin,” “great.”

This is why Confucius says in explaining it:

“Great indeed is the generating power of the Creative; all beings owe their beginning to it. This power permeates all heaven. For this attribute inheres in the other three as well.

The beginning of all things lies still in the beyond in the form of ideas that have yet to become real. But the Creative furthermore has power to lend form to these archetypes of ideas. This is indicated in the word success, and the process is represented by an image from nature: “The clouds pass and the rain does its work, and all individual beings flow into their forms.”

Applied to the human world, these attributes show the great man the way to notable success: “Because he sees with great clarity causes and effects, he completes the six steps at the right time and mounts toward heaven on them at the right time, as though of six dragons.”

The six steps are the six different positions given in the hexagram, which are represented later by the dragon symbol. Here it is shown that the way to success lies in apprehending understanding and giving actuality to the way of the universe (Tao), which, as a law running, through end and beginning, brings about all phenomena in time. Thus each step attained forthwith becomes a preparation for the next. Time is no longer a hindrance but the means of making actual what is potential.

The act of creation having found expression in the two attributes - sublimity and success, the work of conservation is shown to be a continuous actualization and differentiation of form. This is expressed in the two terms “furthering” (literally, “creating that which accords with the nature of a given being”) and “persevering” (literally, “correct and firm”). “The course of the Creative alters and shapes beings until each attains its true, specific nature, then it keeps them in conformity with the Great Harmony. Thus does it show itself to further through perseverance.”

In relation to the human sphere, this shows how the great man brings peace and security to the world through his activity in creating order: “He towers high above the multitude of beings, and all lands are united in peace.”

1)To sublimity, which, as the fundamental principle, embraces all the other attributes, it links love.

2) To the attribute success are linked the mores, which regulate and organize the expressions of love and thereby make them successful.

4) The attribute perseverance is correlated with wisdom, which discerns the immutable laws of all that happens and can therefore bring about enduring conditions.

These speculations, already broached in the commentary called Wen Yen, later formed the bridge connecting the philosophy of the “five stages (elements) of change,” as laid down in the Book of History (Shu Ching) with the philosophy of the Book of Changes, which is based solely on the polarity of positive and negative principles. In the course of time this combination of the two systems of thought opened the way for an increasingly intricate number symbolism.

The lines, however, present good possibilities to invest not so much at the beginning, when the CEO and his corporation are unknown or at the end when the CEO has turned arrogant and overreaches, but rather in the Hexagrams in the middle when he has the fire in his belly but has not become corrupt.

THE LINES

NINE IN THE FIRST PLACE

Managerial Issue: The CEO – managing the corporation’s Creative period, based on a great idea, but no one to support him yet.

Managerial Lesson: Be patient.

Managerial Warning: At the first stage of the Creative Time-Space, the CEO’s idea is a winner but lacks supporters. This is Apple and Steven Jobs, Microsoft and Bill Gates and Oracle and Larry Ellison at its very beginnings. This newly born corporation (or a recently restructured one) has new and brilliant ideas for brilliant products. Nevertheless, these products are still at a theoretical level or on the drawing board. And its creators are not yet known.

· the main thing is not to expend one’s powers prematurely in an attempt to obtain by force something for which the time is not yet ripe.

Managerial Advice: The Superior CEO is patient, particularly at this time when all the elements of success are present except for the timing. He knows he must not overreach because the time is not yet ripe. The Superior CEO is true to himself and to his dream, and resists the advice of those around him who will surely tell him to desist just when he is about to turn his corporation into a successful one.

· He does not allow himself to be influenced by outward success or failure, but confident in his strength, he bides his time.

Investment Advice: Do not invest. It is still a bit early to invest. We should keep an eye on this stock and follow it closely for a future purchase. The men behind this corporation are sure winners. They will not give up their dreams despite the inevitable negative comments from the "experts".

NINE IN THE SECOND PLACE

Managerial Issue: The CEO – managing the corporation’s Creative period now that his brilliant idea is becoming visible.

Managerial Lesson: Be passionate.

Managerial Warning: At the second stage of the Creative Time-Space, the CEO finds that passion is a must when the corporation is becoming more visible. This is Microsoft when IBM endorsed its operating system. The investment bankers had recognized Microsoft's brilliant ideas and his founder’s brilliance. The market is beginning to pay attention.

Managerial Advice: The Superior CEO always keeps his goal in sight and will never let go of them. He has what it takes to be successful.

· what distinguishes him from the others is his seriousness of purpose, his unqualified reliability, and the influence he exerts on his environment without conscious effort.

Investment Advice: Invest. We should consider the possibility of investing small quantities for our portfolio.

NINE IN THE THIRD PLACE

Managerial Issue: The CEO – creating the corporation when everyone wants to invest in it.

Managerial Lesson: Be prudent.

Managerial Warning: At the third stage of the Creative Time-Space, the CEO must now reach for a much higher position. He is now well known, and everyone wants a piece of the action. The CEO should remember that at the peak of success lays the highest danger, when he might lose his focus and his vision because harmful influences would have him deviate from his original course. His humility, the secret to his original success, is about to turn to pride, the mother of all evils.

· Many a great man has been ruined because the masses flocked to him and swept him into their course.

Managerial Advice: The Superior CEO is honest. He always stays true to himself and to his dream. He has the strength to resist the advice of those around him who will surely tell him to desist just when he is about to become successful. This is Microsoft when it went into production. The Corporation is preparing to produce the first prototype of the product, in spite of the jitters of the corporation's founders. The investors smell a killing. The more aggressive portfolio managers are beginning to ask questions about the stock and begin to buy small amounts. Nevertheless, some doubts still appear which will be dissipated in the future by the great quality of the product.

· true greatness is not impaired by temptations. He who remains in touch with the time that is dawning, and with its demands, is prudent enough to avoid all pitfalls, and remains blameless.

Investment Advice: Invest. It is time to add this stock for our own portfolio. We are investing now, because if you only invest when you can see the light at the end of the tunnel, then it is probably too late.

NINE IN THE FOURTH PLACE

Managerial Issue: The CEO – managing the corporation’s Creative period when he must make a crucial decision between out licensing the product or going at it alone.

Managerial Lesson: Be truthful.

Managerial Warning: At the fourth stage of the Creative Time-Space, the CEO faces a crucial period of transition. He may license out his technology for the whole world to participate, or he may decide to go at it alone and try and keep all the potential earnings for himself alone. This is Microsoft in full production. The product has been very successful, and the corporation is in full production. By now this is old news for most investors who long ago recognized the value of the product. The stock's value begins to increase.

But now the CEO has to make a crucial decision. On the one hand, he can choose to produce in large scale and go to the capital markets and merchant bankers to sell its stocks and raise additional funds to keep the market for itself. Or, on the other hand, he can turn the corporation into a specialty product type. This was the original problem of Apple computers - to drop the price and license its products for other companies to mass produce it and for everyone to buy it and become the industry standard as well as a virtual monopoly in the hardware and software PC market, or not to license their product and try to maintain their position of a specialty product with excellent quality, high prices and highly inaccessible. This is a crucial decision for the corporation.

Managerial Advice: The Superior CEO’s is humble and willing to share the corporate knowledge with the rest of the world. He always keeps in mind what Apple never did and what IBM always says and does: the corporation that shares its power will keep it, especially in the long run.

Investment Advice: Do not invest. The stock will continue to increase, but we should not add to our positions. We should rather hold our position until most analysts reduce its earnings per share estimates and then immediately sell it.

NINE IN THE FIFTH PLACE

Managerial Issue: The CEO – managing the corporation’s Creative period when everyone wants to join.

Managerial Lesson: Humility.

Managerial Warning: At the fifth stage of the Creative Time-Space, the CEO has brought his corporation to the highest level of its production and marketing cycle. The best talent of the industry wants to join this corporation. The CEO is like a magnet that attracts the best in the field. Like attracts like. The best wants to be with the best. But he is now facing the beginning of the end. Now, that all the important people in the world want to be with and listen to what this CEO has to say, his humility will turn to pride. At the highest point of success, pride, the seed of destruction, always appears.

· Here the great man has attained the sphere of the heavenly beings. His influence spreads and becomes visible throughout the whole world. Everyone who sees him may count himself blessed.

Managerial Advice: The Superior CEO is always humble and always listens. Even someone as brilliant and as touched by Heaven as Larry Ellison should have someone whisper in his ear: "Respice te, hominem te memento" ("Look behind you, remember you are only a man") and "Memento mori" ("Remember (that you are) mortal")

Investment Advice: Invest. Keep an eye on this company. It might go nearly bust as Apple and be reborn again.

NINE IN THE SIXTH PLACE

Managerial Issue: The CEO – managing the Creative period to re-create the corporation when arrogance is about to destroy it.

While one CEO is closing his cycle from flying high thanks to his humility to crashing down because of his pride, while one CEO sees Heaven withdraw the blessings it once so generously bestowed upon him, another CEO such as Larry Page and Sergey Brin of Google or Mark Zuckenberg of Facebook, is beginning to be noticed by the investors as he receives the blessings from Heaven.

Managerial Lesson: Be Flexible.

Managerial Warning: At the sixth stage of the Creative Time-Space, the CEO behaves in a very arrogant fashion, much like Apple’s CEO (Sculley) in the early 90’s. The Inferior CEO will deliberately:

· Fail to recognize the disruptive technologies. He will delude himself into thinking that their product will continue to sell even if their improvements are not what the market is asking for at that particular time (the case of the first semi tablet called Newton). Everybody, even the inexperienced investors, and the laymen recognize the success of the competitor’s product and consider it the standard of their industry, such as the case of Microsoft vs. Apple years back.

· Allow the drain on brainpower to take place. It might be that the corporation’s competitors, not being able to compete head on, will begin to steal their most brilliant executives who are the creative power behind the corporation (the case of the arrogance of Ballmer of Microsoft who sees his best programmers leave for Google). Or maybe some of the brain power will leave because the corporation became too conservative instead of keeping eternally young such as Hewlett Packard when the original founders were alive. Or maybe because the less competent but very politically savvy managers are driving them out, as they did with Steven Jobs of Apple.

· Encourage the corporation to step on newcomers much like Microsoft did with Netscape. Such arrogance will only lead it to problems with the law. It requires certain humility; such as the one IBM surprisingly showed after its debacle years back, to turn the corporation around. However, turnarounds are usually very rare, and this corporation probably will not make it. Bill Gates should remember that IBM could have crushed Microsoft at its very beginning but never did because it was too arrogant to even purchase a substantial percentage of Microsoft’s stock. IBM’s humility returned years later.

Arrogant dragon will have cause to repent.

· When a man seeks to climb so high that he loses touch with the rest of mankind, he becomes isolated, and this necessarily leads to failure.

· This line warns against titanic aspirations that exceed one’s power.

· A precipitous fall would follow.

Managerial Advice: The Superior CEO is flexible. He knows that to think out of the box, he must always remember that everything changes and transforms itself. This could well be the case of Hewlett Packard when its founders were alive; with its high and lows in the value of its stock, but as a constant element of excellence, behaving in a very professional manner and with the strength of a commitment. Nevertheless, even this type of corporation has its maturing and aging cycles, and it will eventually die. Nothing lasts forever. Everything changes and transforms itself.

Investment Advice: Do not invest. This is a time for investors to be careful. This is the time when the corporation is about to make mistakes. The investor must now sell. The I Ching is very explicit about keeping away from anything, which lacks humility. It will be wise, however to continue to keep an eye on this corporation, as it might turn around and renew itself, much like IBM which did have the humility to change. We must ask the I Ching again should the analysts place this stock back on their buy list or if they increase their earnings expectations.

ALL NINES IN ALL LINES

Managerial Issue: The perfect combination of a brilliant easy going CEO with the proper determination to carry out his vision, backed by the blessings of Heaven.

Investment Advice: Invest. A definite buy, this is an excellent long-term investment.