HEXAGRAM 05: ORIGINAL, INTERPRETATION
AND CASES
HEXAGRAM 05 – Hsu -
Waiting (Nourishment)
Above K'AN THE ABYSMAL, WATER
Below CH’IEN THE CREATIVE, HEAVEN
All beings have need of nourishment from above.
But the gift of food comes in its own time, and
for this one must wait.
This hexagram shows the clouds in the heavens, giving rain
· to refresh all that grows and
· to provide mankind with food and drink.
The rain will come in its own time.
· We cannot make it come;
· we have to wait for it.
The idea of waiting is further suggested by the attributes of the two trigrams –
·
strength within,
·
danger in front. 2
· Strength in the face of danger does not plunge ahead but bides its time, whereas
· weakness in the face of danger
o grows agitated and
o has not the patience to wait.
THE JUDGMENT
WAITING. If you are sincere,
You have light and success.
Perseverance brings good fortune.
It furthers one to cross the great water.
Waiting is not mere empty hoping.
It has the inner certainty of reaching the goal.
Such certainty alone gives that light which leads to success.
This leads to the perseverance that
· brings good fortune and
· bestows power to cross the great water.
One is faced with a danger that has to be overcome.
Weakness and impatience can do nothing.
Only a strong man can stand up to his fate,
for his inner security enables him to endure to the end.
This strength shows itself in uncompromising truthfulness (with himself).
It is only when we have the courage to face things exactly as they are,
without any sort of self-deception or illusion,
that a light will develop out of events,
by which the path to success may be recognized.
This recognition must be followed by resolute and persevering action.
For only the man who goes to meet his fate resolutely is equipped to deal with it adequately.
Then he will be able to cross the great water –
that is to say,
he will be capable
· of making the necessary decision and
· of surmounting the danger.
THE IMAGE
Clouds rise up to heaven: The image of WAITING.
Thus the superior man
· eats and
· drinks,
· Is joyous and
· of good cheer.
When clouds rise in the sky, it is a sign that it will rain.
There is nothing to do but to wait until the rain falls.
It is the same in life when destiny is at work.
· We should not worry and seek to shape the future by interfering in things before the time is ripe.
· We should quietly fortify the body with food and drink and the mind with gladness and good cheer.
Fate comes when it will, and thus we are ready.
THE LINES
Nine at the beginning means:
Waiting in the meadow.
It furthers one to abide in what endures.
No blame.
The danger is not yet close.
One is still waiting on the open plain.
Conditions are still simple, yet there is a feeling of something impending.
One must continue to lead a regular life as long as possible.
Only in this way does one
· guard against a premature waste of strength,
· keep free of blame and error that would become a source of weakness later on.
Nine in the second place means:
Waiting on the sand.
There is some gossip.
The end brings good fortune.
The danger gradually comes closer.
Sand is near the bank of the river, and the water means danger.
Disagreements crop up.
General unrest can easily develop in such times, and we lay the blame on one another.
He who stays calm will succeed in making things go well in the end.
Slander will be silenced if we do not gratify it with injured retorts.
Nine in the third place means:
Waiting in the mud.
Brings about the arrival of the enemy.
Mud is no place for waiting, since it is already being washed by the water of the stream.
Instead of having gathered strength to cross the stream at one try,
one has made a premature start that has got him no farther than the muddy bank.
Such an unfavorable position invites enemies from without,
who naturally take advantage of it.
Caution and a sense of the seriousness of the situation are all that can keep one from injury.
Six in the fourth place means:
Waiting in blood.
Get out of the pit.
The situation is extremely dangerous.
It is of utmost gravity now - a matter of life and death.
Bloodshed seems imminent.
There is no going forward or backward; we are cut off as if in a pit.
Now we must simply stand fast and let fate take its course.
This composure, which keeps us from aggravating the trouble by anything we might do,
is the only way of getting out of the dangerous pit.
0 Nine in the fifth place means:
Waiting at meat and drink.
Perseverance brings good fortune.
Even in the midst of danger there come intervals of peace when things go relatively well.
If
· we possess enough inner strength,
· we shall take advantage of these intervals to fortify ourselves for renewed struggle.
We must know how to enjoy the moment without being deflected from the goal,
for perseverance is needed to remain victorious.
This is true in public life as well;
it is not possible to achieve everything all at once.
The height
of wisdom is
·
to allow people enough recreation
·
to quicken pleasure in their work until the task is completed.
Herein lies the secret of the whole hexagram.
It differs from Chien, OBSTRUCTION (39), in the fact that in this instance, while waiting,
we are sure of our cause and therefore do not lose the serenity born of inner cheerfulness.
Six at the top means:
One falls into the pit.
Three uninvited guests arrive.
Honor them, and in the end there will be good fortune.
The waiting is over; the danger can no longer be averted.
One
· falls into the pit and
· must yield to the inevitable.
Everything seems to have been in vain.
But precisely in this extremity things take an unforeseen turn.
Without a move on one's own part, there is outside intervention.
At first one cannot be sure of its meaning: is it rescue or is it destruction?
A person in this situation
· must keep his mind alert and not withdraw into himself with a sulky gesture of refusal, but
· must greet the new turn with respect.
Thus he ultimately escapes the danger, and all goes well.
Even happy turns of for-tune often come in a form that at first seems strange to us.
1. [In the German translation, this secondary name does not appear in bk. I. See P. 410)
2. [The upper trigram is considered to be in front of the lower. See P- 357)
05 - WAITING
MANAGERIAL
ISSUE:
The CEO - waiting patiently when danger is
all around him for the corporation’s economic improvement to come on its own
time.
Hexagram 5 addresses both the CEO of the
corporation as well as the investor.
Both must wait until the corporation’s economic conditions improve. Neither must take any immediate action. Prosperity will come when Heaven wills
it. This is a mandate from Heaven and
there is absolutely nothing that can be done about it. The corporation has all the necessary
elements to be successful; nevertheless, at this particular
time, it is going through a very difficult period. For the investor as well as for the CEO who
has the strength and the willingness to wait, the returns will be very
positive.
The CEO can wait because he has the inner
certainty Heaven will be on his side when the proper time comes. Heaven will bestow great opportunities to
this corporation in due time, provided the CEO can wait patiently.
Louis V. Gerstner, Jr. of IBM is a good
example of the proper attitude during the Waiting Time-Space. IBM had gone through a very difficult period;
however, Gerstner knew IBM had all that was necessary to return to its former
greatness. This was not mere empty
hoping. He had the inner certainty of
reaching the goal. IBM had a great
corporate culture and the financial strength.
Its new management had the humility and the strength to face its own
problems and to take the necessary measures (through joint ventures and
restructurings). He did a corporate
self-examination and faced the truth.
But what is most important is that he had the tenacity to carry out the
necessary corrections to regain its past glory. The CEO knew IBM had all the elements for
success and all he had to do was be patient.
MANAGERIAL
LESSON:
The I Ching presents the following sequence
of steps the CEO must take while waiting for profitability to eventually
return:
The Superior CEO:
1)
Relaxes and is patient. He keeps the corporation’s financial strength
for the right moment. Meanwhile he
waits. This waiting period is recommended by the I Ching itself and carries the
wisdom of the sages. It is the sound
advice of an expert. This alone should
be enough to encourage him while he waits.
The economic scenario approaching is negative. There could be a recession or a downturn in
the corporation’s business due to a change in consumer preference or changes in
technology. This is not the time to set
up goals or plan for grand schemes or strategies. This is the time to strengthen the corporate
balance sheet. Such was the case of
Citicorp during the eighties when it almost went bankrupt for Real estate
related loans. Its Chairman
established a policy of bulletproofing the bank to face the heavy competition
from the Japanese banks and the banking industry’s downturn. Thus the advice to
nourish the corporation and wait patiently was the proper one for the
time. And so it
is for Pandit, Citicorp’s present CEO – he has the backing of the government
because Citi is too big to fail. All he has to do is wait patiently for the profitability to return.
2)
Accepts this event as Heaven sent. This is a matter of Heaven’s will and when
fate is at work there is nothing to be done except wait. It is of no use to try to act before the proper
time, as it will only make matters worse.
Meanwhile, however, he must strengthen the corporation for such a proper
time.
3)
Maintains the correct attitude. The I Ching advises the CEO to be true to his
own self because only then will he have the strength to go through the waiting
period. If the CEO is true to his
principles, if he is willing to cast away anything that is of no value to the
corporation, if he is willing to see things for what they are and not for what
he wants them to be, then Heaven will shed the light on him so that he may see
the true path. However, once Heaven
has shown him the true path, then he must be tenacious in pursuing such
path. Anything less than a complete and
full commitment will result in failure.
Hexagram 5 represents one of the best
managerial lessons. Waiting is an
art. All CEOs must learn to wait. Even though there would appear to be a stigma
attached to waiting, there is nothing cowardly in waiting when waiting is the
best alternative. The CEO requires great
strength to wait particularly when facing danger. The weak CEO, on the other hand will lose his
nerve in the face of danger and act foolishly, thus placing the corporation in
a dangerous position.
INVESTMENT ADVICE:
For the investor, the Waiting represents a
favorable Time-Space to invest
By itself (no lines), the Time-Space points
to success provided the CEO perseveres:
WAITING.
If you are sincere,
You have light and success.
Perseverance brings good fortune.
It furthers one to cross the great water.
Waiting is not mere empty hoping. It has the inner certainty of reaching the
goal. Such certainty alone gives that
light which leads to success. This leads
to the perseverance that brings good fortune and bestows power to cross the
great water.
One is faced with a danger that has to be overcome.
Weakness and impatience can do nothing.
Only a strong man can stand up to his fate, for his inner security
enables him to endure to the end. This
strength shows itself in uncompromising truthfulness (with himself). It is only when we have the courage to face
things exactly as they are, without any sort of self-deception or illusion,
that a light will develop out of events, by which the path to success may be
recognized. This recognition must be
followed by resolute and persevering action.
For only the man who goes to meet his fate resolutely is equipped to
deal with it adequately. Then he will be
able to cross the great water - that is to say, he will be capable of making
the necessary decision and of surmounting the danger.
The Lines present good possibilities to
invest in the second, the fifth and the sixth places,
For the investor as well as for the CEO,
patience is a virtue. Warren Buffett
speaks of holding a stock forever. The I
Ching would not agree with this concept as every corporation goes through
different periods depending on who the Board of Directors has elected as its
CEO. A bad CEO can ruin a corporation as
in the case of Stan O'Neal of Merrill Lynch.
The I Ching warned the investors about the dangers of investing in
Merrill Lynch’s stock. Those who
believed in “buy and Hold” almost lost their entire investment.
The Waiting period, depending on the lines,
can be a very profitable Time-Space.
However, in general and if possible, it is best to look for more
favorable investments.
The following are cases of corporations
under the Waiting Time-Space:
·
Dollar Tree, Inc. DLTR under CEO
Bob Sasser
THE LINES
NINE IN THE
FIRST PLACE
.
Managerial Issue: The CEO –
waiting patiently for the corporation’s economic improvement to come on its own
time - when danger is not yet evident.
Managerial Lesson: Be preventive.
Managerial
Warning: At the first stage of the Waiting Time-Space, the CEO must realize it
is never too early to strengthen the corporation. Even though the worst times to come are still
too far away, they will surely come.
Managerial
Advice: The Superior CEO is always on guard for what is to come. That is, he continues with his regular line
of business but takes no unnecessary chances.
By such a policy, he keeps his corporation’s financial strength and
avoids making mistakes.
Investment Advice: Do not
invest. Keep this investment in
mind.
NINE IN THE
SECOND PLACE
Managerial Issue: The CEO –
waiting patiently for the corporation’s economic improvement to come on its own
time - when danger is becoming more evident.
Managerial Lesson: Be quiet.
Managerial
Warning: At the second stage of the Waiting Time-Space, the CEO must now prepare
for the difficult times which draw very near.
He will face opposition from his executives and heavy criticism from all
quarters including the Board of Directors, the stockholders and the Press.
Managerial
Advice: The Superior CEO keeps quiet and avoids getting into a shouting contest
with any of his critics. He knows such
policy will take away the anger from his critics’ worst attacks. This was the case of Citicorp’s Reed, who
wisely kept quiet during Citicorp’s darkest hours. This is no time for finger pointing.
Investment Advice: Invest
NINE IN THE
THIRD PLACE
Managerial Issue: The CEO –
waiting patiently for the corporation’s economic improvement to come on its own
time - waiting in the wrong place when danger threatens his corporation.
Managerial Lesson: Be dead serious.
Managerial
Warning: At the third stage of the Waiting Time-Space, the CEO has miscalculated
the timing and failed to strengthen the corporate balance sheet. He risks placing the corporation in a
dangerous position and exposing it to a possible takeover. Its enemies will try to either buy it or
destroy it.
Managerial
Advice: The Superior CEO realizes the depth of his corporation’s weakness and
maintains a very serious attitude in the face of danger. He knows such attitude might still save the
corporation.
Investment Advice: Do not
invest
SIX IN THE
FOURTH PLACE
Managerial Issue: The CEO –
waiting patiently for the corporation’s economic improvement to come on its own
time - when danger is at its peak.
Managerial Lesson: Be serene.
Managerial
Warning: At the fourth stage of the Waiting Time-Space, the CEO must realize the
worst has arrived and must face the imminent destruction of his
corporation. If its enemies are
successful and buy it out, they will lay off many employees.
Managerial
Advice: The Superior CEO waits with resignation and strength until the worst is
over. He knows there is nothing he can
do – he can neither attack nor withdraw.
He is in the hands of Heaven and if Heaven so ordains it, the
corporation will survive. In this particular line when danger is at its worst the best thing
to do is to wait. This attitude of
“composure, which keeps us from aggravating the trouble by anything we might
do, is the only way of getting out of the dangerous pit.” For the I Ching not doing is as important as
doing.
Investment Advice: Do not
invest
NINE IN THE
FIFTH PLACE
Managerial Issue: The CEO –
waiting patiently for the corporation’s economic improvement to come on its own
time - waiting between periods of danger.
Managerial Lesson: Be focused.
Managerial
Warning: At the fifth stage of the Waiting Time-Space, the CEO is dealing with a
corporate crisis at its worst; yet, there is a silver
lining. His corporation will get a Heaven sent break, which will enable him to strengthen it
and improve its chances for survival.
Managerial
Advice: The Superior CEO makes the best of these moments of relative calm by
strengthening the corporation while resisting with determination. He knows success lies in keeping
an eye on the goal at all times while maintaining a certain cheerfulness
even in the face of danger. This means
waiting because the Superior CEO is certain there will be a way out rather than
waiting because there is no way out.
The I Ching says;
“Herein lies the secret of the whole hexagram.
It differs from Chien, OBSTRUCTION (39), in the fact that in this
instance, while waiting, we are sure of our cause and therefore do not lose the
serenity born of inner cheerfulness”.
Investment Advice: Invest.
SIX IN THE
SIXTH PLACE
Managerial Issue: The CEO –
waiting patiently for the corporation’s economic improvement to come on its own
time - waiting in the midst of the inevitable
destruction.
Managerial Lesson: Be hopeful.
Managerial
Warning: At the sixth stage of the Waiting Time-Space, the CEO must realize his
efforts have been in vain. He has not
been able to save his corporation. This
is his corporation’s worst situation.
Yet in the midst of all the worst, an
unexpected investor has shown interest mainly due to the CEO’s positive
attitude. The investor’s intentions are
not clear. Nevertheless, there is a
positive way out.
Managerial
Advice: The Superior CEO keeps the same positive attitude towards the new
potential owners. Such
positive attitude, might save the corporation and its future.
Historically we can compare this line to
Emperor Hirohito’s attitude when facing the defeat of Japan. Both he and his empire were at the worst of
dangers. Yet he trusted and waited calmly and Heaven favored Japan with good fortune after
all. In the midst of so much destruction Japan’s
turned its former enemy into its best friend.
This is called “embracing the enemy” or throwing one’s arms around him
to show him friendliness while holding his arms tight so that that he may not
raise his arms against one.
Investment Advice: Invest.
MANAGERIAL CASES
Dollar Tree,
Inc. DLTR under CEO Bob Sasser
Bob Sasser Performance: ROI= 248.07% Annualized
Return= 17.95%
SPY’s
Performance: ROI= 20.91% Annualized
Return= 2.55%
Bob Sasser has been CEO of Dollar Tree
since 2004. Since then, he has been able
to substantially outperform the SPY.
However, because he has been CEO for almost
a decade, we asked the Oracle once more about his future Time-Space. The result is the Waiting.
Points the investor should consider:
1) THE HEXAGRAM
Waiting is a negative condition which
forces the CEO to wait for the time when the conditions will improve.
WAITING.
If you are sincere,
You have light and success.
Perseverance brings good fortune.
It furthers one to cross the great water.
Waiting is not mere empty hoping. It has the inner certainty of reaching the
goal. Such certainty alone gives that
light which leads to success. This leads
to the perseverance that brings good fortune and bestows power to cross the
great water.
One is faced with a danger that has to be overcome.
Weakness and impatience can do nothing.
Only a strong man can stand up to his fate, for his inner security
enables him to endure to the end. This
strength shows itself in uncompromising truthfulness (with himself). It is only when we have the courage to face
things exactly as they are, without any sort of self-deception or illusion,
that a light will develop out of events, by which the path to success may be
recognized. This recognition must be
followed by resolute and persevering action.
For only the man who goes to meet his fate resolutely is equipped to
deal with it adequately. Then he will be
able to cross the great water - that is to say, he will be capable of making
the necessary decision and of surmounting the danger.
2) THE ADVICE
Clouds rise up to
heaven: The image of WAITING.
Thus the
superior man eats and drinks,
Is joyous and of good cheer.
When clouds rise in the sky, it is a sign
that it will rain. There is nothing to
do but to wait until the rain falls. It
is the same in life when destiny is at work.
We should not worry and seek to shape the future by interfering in
things before the time is ripe. We
should quietly fortify the body with food and drink and the mind with gladness
and good cheer. Fate comes when it will,
and thus we are ready.
3) THE LINES:
There is one moving line
and it is positive
Nine in the second place
means:
Waiting on the sand.
There is some gossip.
The end brings
good fortune.
The danger gradually comes closer. Sand is near the bank of the river, and the
water means danger. Disagreements crop
up. General unrest can easily develop in such times, and we lay the blame on
one another. He who stays calm will
succeed in making things go well in the end.
Slander will be silenced if we do not gratify it with injured retorts.
4) THE MOVING HEXAGRAM
HEXAGRAM 63 - Chi Chi
- After Completion
This hexagram is the evolution of T'ai, PEACE (11).
The transition from confusion to order is completed, and everything is
in its proper place even in particulars.
The strong lines are in the strong places, the weak lines in the weak
places. This is a very favorable
outlook, yet it gives reason for thought.
For it is just when perfect equilibrium has been reached that any
movement may cause order to revert to disorder.
The one strong line that has moved to the top, thus effecting complete
order in details, is followed by the other lines, each
moving according to its nature, and thus suddenly there arises again the
hexagram P'i, STANDSTILL (12).
Hence the present hexagram indicates the
conditions of a time of climax, which necessitate the utmost caution.
THE JUDGMENT
AFTER COMPLETION.
Success in small matters.
Perseverance furthers.
At the beginning good fortune,
At the end disorder.
The transition from the old to the new time
is already accomplished. In principle,
everything stands systematized, and it is only in regard to
details that success is still to be achieved.
In respect to this, however, we must be careful to maintain the right
attitude. Everything proceeds as if of
its own accord, and this can all too easily tempt us to relax and let things
take their course without troubling over details. Such indifference is the root of all
evil. Symptoms of decay are bound to be
the result. Here we have the rule
indicating the usual course of history.
But this rule is not an inescapable law.
He who understands it is in position to avoid its effects by dint of
unremitting perseverance and caution.
THE IMAGE
Water over fire: the image of the condition
In AFTER COMPLETION.
Thus the
superior man
Takes thought of misfortune
And arms himself against it in advance.
When water in a kettle hangs over fire, the
two elements stand in relation and thus generate energy (cf. the production of
steam). But the resulting tension
demands caution. If the water boils
over, the fire is extinguished and its energy is
lost. If the heat is too great, the
water evaporates into the air. These
elements here brought into relation and thus generating energy are by nature
hostile to each other. Only the most
extreme caution can prevent damage. In
life too there are junctures when all forces are in balance and work in
harmony, so that everything seems to be in the best of order. In such times only the sage recognizes the
moments that bode danger and knows how to banish it by means of timely precautions.