HEXAGRAM 08: ORIGINAL, INTERPRETATION AND CASES

 

 

 

HEXAGRAM 08 – Pi - Holding Together [Union]

 

Above K'AN  THE ABYSMAL, WATER

Below K'UN  THE RECEPTIVE, EARTH

 

The waters on the surface of the earth flow together wherever they can,

as for example in the ocean,

where all the rivers come together. 

Symbolically this connotes

·        holding together and

·        the laws that regulate it. 

The same idea is suggested by the fact that

all the lines of the hexagram except the fifth, the place of the ruler, are yielding. 

The yielding lines hold together because they are influenced by

·        a man of strong will in the leading position,

·        a man who is their center of union. 

Moreover, this strong and guiding personality in turn holds together with the others,

finding in them the complement of his own nature.

 

THE JUDGMENT

 

HOLDING TOGETHER brings good fortune.

Inquire of the oracle once again

Whether you possess sublimity, constancy, and perseverance;

Then there is no blame. 

Those who are uncertain gradually join.

Whoever comes too late

Meets with misfortune.

 

What is required is that we unite with others, in order that

all may complement and aid one another through holding together. 

But such holding together calls for a central figure around whom other persons may unite. 

To become a center of influence holding people together is a

·        grave matter and

·        fraught with great responsibility. 

It requires

·        greatness of spirit,

·        consistency, and

·        strength. 

Therefore let him who wishes to gather others about him ask himself whether he is equal to the undertaking,

for anyone attempting the task without a real calling for it

only makes confusion worse than if no union at all had taken place.

 

But when there is a real rallying point,

those who at first are hesitant or uncertain gradually come in of their own accord. 

Late-comers must suffer the consequences, for in holding together the question of the right time is also important. 

Relationships are formed and firmly established according to definite inner laws. 

Common experiences strengthen these ties, and he who comes too late to share in these basic experiences must suffer for it if, as a straggler, he finds the door locked.

 

If a man

·        has recognized the necessity for union and

·        does not feel strong enough to function as the center,

it is his duty to become a member of some other organic fellowship.

 

THE IMAGE

 

On the earth is water:  The image Of HOLDING TOGETHER.

Thus the kings of antiquity

·        Bestowed the different states as fiefs And

·        cultivated friendly relations With the feudal lords.

 

Water

·        fills up all the empty places on the earth and

·        clings fast to it. 

The social organization of ancient China was based on this principle of the holding together of

·        dependents and

·        rulers. 

Water flows to unite with water, because all parts of it are subject to the same laws. 

So too should human society hold together through a community of interests that

allows each individual to feel himself a member of a whole. 

The central power of a social organization must see to it that

every member finds that his true interest lies in holding together with it,

as was the case in the paternal relationship between king and vassals in ancient China.

 

THE LINES

 

Six at the beginning means:

Hold to him in truth and loyalty; 

This is without blame.

Truth, like a full earthen bowl:

Thus in the end

Good fortune comes from without.

 

Fundamental sincerity is the only proper basis for forming relationships. 

This attitude,

symbolized by a full earthen bowl, in which the content is everything and the empty form nothing,

shows itself

·        not in clever words but

·        through the strength of what lies within the speaker. 

This strength is so great that it has power to attract good fortune to itself from without.

 

Six in the second place means:

Hold to him inwardly.

Perseverance brings good fortune.

 

If a person responds

·        perseveringly and

·        in the right way

to the behests from above that summon him to action,

·        his relations with others are intrinsic and

·        he does not lose himself. 

But

if a man seeks association with others as if he were an obsequious office hunter,

he throws himself away. 

He does not follow the path of the superior man, who never loses his dignity.

 

Six in the third place means: 

You hold together with the wrong people.

 

We are often among people who do not belong to our own sphere. 

In that case we must beware of being drawn into false intimacy through force of habit. 

Needless to say, this would have evil consequences. 

Maintaining sociability without intimacy is the only right attitude toward such people,

because otherwise

we should not be free to enter into relationship with people of our own kind later on.

 

Six in the fourth place means:

Hold to him outwardly also.

Perseverance brings good fortune.

 

Here the relations with a man who is the center of union are well established. 

Then we may, and indeed we should, show our attachment openly. 

But we must

·        remain constant and

·        not allow ourselves to be led astray.

 

0 Nine in the fifth place means:

Manifestation of holding together.

In the hunt the king uses beaters on three sides only

And foregoes game that runs off in front.

The citizens need no warning.

Good fortune.

 

In the royal hunts of ancient China it was customary to drive up the game from three sides,

but on the fourth the animals had a chance to run off. 

If they failed to do this

they had to pass through a gate behind which the king stood ready to shoot. 

Only animals that entered here were shot;

those that ran off in front were permitted to escape. 

This custom accorded with a kingly attitude;

the royal hunter did not wish to turn the chase into a slaughter,

but held that the kill should consist only of those animals which had so to speak

voluntarily exposed themselves.

 

There is depicted here a ruler, or influential man, to whom people are attracted. 

·        Those who come to him he accepts,

·        those who do not come are allowed to go their own way. 

He invites none, flatters none - all come of their own free will. 

In this way there develops a voluntary dependence among those who hold to him. 

They do not have to be constantly on their guard but may express their opinions openly. 

Police measures are not necessary, and they cleave to their ruler of their own volition. 

The same principle of freedom is valid for life in general. 

We should not woo favor from people. 

If a man cultivates within himself

·        the purity and

·        the strength

that are necessary for one who is the center of a fellowship,

those who are meant for him come of their own accord.

 

Six at the top means:

He finds no head for holding together. 

Misfortune.

 

The head is the beginning. 

If the beginning is not right, there is no hope of a right ending. 

If we

·        have missed the right moment for union and

·        go on hesitating to give complete and full devotion,

we shall regret the error when it is too late.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

08 - UNION

 

 

 

MANAGERIAL ISSUE

 

The CEO – managing to keep his corporation (employees/divisions) united.

 

Hexagram 8 describes the forces that hold together a corporation as well as the forces that create Union – that is, Union amongst its managers, employees, shareholders, divisions, and even customers.

 

The I Ching uses the image of the all the rivers flowing into the same ocean and all the lines obeying the ruling line.  In the case of a conglomerate such as General Electric, everything flows towards the same central corporation even though there are many businesses within this corporation.  All the managers obey the rule of the CEO, much like they used to obey Jack Welch, when he was CEO of GE.  It is the CEO’s leadership and strong personality that holds the corporation together.  The CEO creates the union because he is its center.  The other executives give support and complement his personality.

 

 

 

MANAGERIAL LESSON

 

The Superior CEO knows there are two fundamental elements he must keep in mind if he wants to create a cohesive team or a strong bond between all the employees/divisions of the corporation.  He must:

 

  1. Establish UNITY as the main goal.

 

  1. Establish fair internal rules within the corporation, rules which should merit and merit only.

 

 

The Superior CEO also knows he must:

 

1)   Be such a strong leader that almost he alone can hold this union together.

 

·        The I Ching says, "Such holding together calls for a central figure around whom other persons may unite.  To become a center of influence holding people together is a grave matter and fraught with great responsibility.  It requires greatness of spirit, consistency, and strength

 

2)   Ask if he is the right person for the job and quit with honor if he is not.  He must have the strength to accept the fact should he prove to be the wrong person for the job. 

 

·        The I Ching says. Therefore let him who wishes to gather others about him ask himself whether he is equal to the undertaking, for anyone attempting the task without a real calling for it only makes confusion worse than if no union at all had taken place.” If a man has recognized the necessity for union and does not feel strong enough to function as the center, it is his duty to become a member of some other organic fellowship.” 

 

If we were to talk about politics instead of business, this would be the Hexagram of Abraham Lincoln.  He held the Union together by the strength of his own character.   In the case of business, what better example than Jack Welch and the way he successfully held together the GE group for so many years.

 

3)   Warn those corporations, which fail to recognize the value of joining a great holding corporation, or for those executives who fail to realize the CEO’s abilities and talents. 

 

·        The I Ching says "But when there is a real rallying point, those who at first are hesitant or uncertain gradually come in of their own accord.  Latecomers must suffer the consequences, for in holding together the question of the right time is also important.  Relationships are formed and firmly established according to definite inner laws.  Common experiences strengthen these ties, and he who comes too late to share in these basic experiences must suffer for it if, as a straggler, he finds the door locked.”

 

4)   Keep the employees and management together – which is the essence of creating the corporate unity.  The I Ching advises the CEO that the essence of creating the corporate unity lies in keeping together the employees and management.  The I Ching compares this effort to water uniting with water.  Management and the employees are the same in that what unites them is the common interest they hold in making this corporation successful so that all can benefit from it, even though they may have different roles.  This is even more evident if all the employees share in the profits because then all the employees will feel they are part of the corporation.  It is the main duty of management to see to it that every employee feels he is a part of the corporation and that it is in his best interest to participate actively in the well-being of his corporation. 

 

·        The I Ching says "Water flows to unite with water, because all parts of it are subject to the same laws.  So too should human society hold together through a community of interests that allows each individual to feel himself a member of a whole.  The central power of a social organization must see to it that every member finds that his true interest lies in holding together with it.”

 

 

 

INVESTMENT ADVICE:

 

For the investor, the Union is in general a favorable Time-Space to invest.

 

By itself (no lines) points to good fortune if unity is kept:

 

HOLDING TOGETHER brings good fortune.

Inquire of the Oracle once again

Whether you possess sublimity, constancy, and perseverance;

Then there is no blame. 

Those who are uncertain gradually join.

Whoever comes too late

Meets with misfortune.

What is required is that we unite with others, in order that all may complement and aid one another through holding together.  But such holding together calls for a central figure around whom other persons may unite.  To become a center of influence holding people together is a grave matter and fraught with great responsibility.  It requires greatness of spirit, consistency, and strength.  Therefore let him who wishes to gather others about him ask himself whether he is equal to the undertaking, for anyone attempting the task without a real calling for it only makes confusion worse than if no union at all had taken place.

 

But when there is a real rallying point, those who at first are hesitant or uncertain gradually come in of their own accord.  Late-comers must suffer the consequences, for in holding together the question of the right time is also important.  Relationships are formed and firmly established according to definite inner laws.  Common experiences strengthen these ties, and he who comes too late to share in these basic experiences must suffer for it if, as a straggler, he finds the door locked.

 

If a man has recognized the necessity for union and does not feel strong enough to function as the center, it is his duty to become a member of some other organic fellowship.

 

 

Four out of six lines are positive for investing 1, 2, 4, and 5.  This makes this Time-Space positive.

 

 

The following three examples are those of corporations under the Union Time-Space:

 

·        Kraft Foods Inc.  KFT under CEO Irene Rosenfeld

·        Maxim Integrated Products Inc. MXIM under CEO Tunc Doluca

·        Electronic Arts Inc. ERTS under CEO John S. Riccitiello

 

 

 

THE LINES

 

 

 

SIX IN THE FIRST PLACE

 

Managerial Issue:         The CEO – managing his corporation’s union – establishing unity through personal honesty and inner strength.

 

Managerial Lesson: Be sincere. 

 

Managerial Warning: At the first stage of the Union Time-Space, the CEO must establish Unity.

 

Managerial Advice: The Superior CEO is fundamentally sincere.  He knows such sincerity will come across in his plain speaking and even in his plain dressing.  His strong character will strengthen the relationships between the individual members of the holding corporation.  Sincerity coming from the depths of the heart has the power to change the destiny of nations as well as corporations.

This is the line of Abraham Lincoln. 

 

The I Ching says: Fundamental sincerity is the only proper basis for forming relationships.  This attitude, symbolized by a full earthen bowl, in which the content is everything and the empty form nothing, shows itself not in clever words but through the strength of what lies within the speaker.  This strength is so great that it has power to attract good fortune to itself from without.

 

Investment Advice: Invest.

 

 

 

SIX IN THE SECOND PLACE

 

Managerial Issue: The CEO – managing his corporation’s union – responding to the call of Heaven.

 

Managerial Lesson: Be dignifying. 

 

Managerial Warning: At the second stage of the Union Time-Space, the CEO must realize the only way to answer the call of Heaven is to follow the way of the Superior man.

 

Managerial Advice: The Superior CEO is persevering and maintains dignity in all situations.  What course of action should he pursue when Heaven demands he maintain his corporation united (such as in the case when a potential partner requests a merger or a competitor initiates a hostile takeover)? His course of action should be to exercise the virtues of the Superior Man - dignity and tenacity.  The Superior CEO knows that to establish relations with potential partners whether it be within or without in an undignified manner is not worthy of a superior CEO.

 

Investment Advice: Invest.

 

 

 

SIX IN THE THIRD PLACE

 

Managerial Issue: The CEO – managing his corporation’s union - with the wrong people.

 

Managerial Lesson: Be gracious. 

 

Managerial Warning: At the third stage of the Union Time-Space, the CEO is tempted to establish a relationship with an enterprise with which his corporation has nothing in common.  This can only will bring harm to it.

 

Managerial Advice: The Superior CEO knows that when unity is forced with the wrong people the best attitude is to be gracious but distant.  Such was the case of ATT both for the acquisition of NCR, which had no business being part of ATT, and for the hiring of an executive outside the industry for a possible replacement of its CEO.  Both were poor managerial decisions.  The people of NCR had to be gracious but distant.  They knew that in the end each would go their own separate ways to find the adequate partner.  The CEO of ATT was to blame.  He certainly had no sincere desire to unite with the right company or the right employees.  He was not up to the task and proved to be the wrong man for the job.

 

Investment Advice: Do not invest

 

 

 

SIX IN THE FOURTH PLACE

 

Managerial Issue:         The CEO – managing his corporation’s union - with the right people.

 

Managerial Lesson: Be focused. 

 

Managerial Warning: At the fourth stage of the Union Time-Space, the CEO manages to create the proper match for both the CEO and his corporation as well as for the corporation and its parent.  This union will last. 

 

Managerial Advice: The Superior CEO knows that when he achieves unity with the right people he should welcome such unity so long as he keeps within his own line of business.  Both the CEO who has just joined the corporation as well as the corporation that has just merged with the parent corporation should continue to do what they do well in spite of how satisfied they may be with the outcome.  In the case of NCR, for instance, it continued to carry on with its business even though AT&T acquired it.  The lesson for the CEO is to maintain the nature of his business and not change it only because he has just united with another corporation.  The success of such unity will be due to the sincerity and strength of the CEO.

 

Investment Advice: Invest

 

 

 

NINE IN THE FIFTH PLACE

 

Managerial Issue: The CEO – managing his corporation’s union - by attracting good employees and good partners.

 

Managerial Lesson: Be sincere. 

 

Managerial Warning: At the fifth stage of the Union Time-Space, the CEO faces the risk he might not be sincere enough or show sufficient strength of character.

 

Managerial Advice: The Superior CEO knows that to attract the best, he must:

 

 

The I Ching says “He invites none, flatters none - all come of their own free will.  In this way there develops a voluntary dependence among those who hold to him. “   

 

 

The I Ching says: "They do not have to be constantly on their guard but may express their opinions openly.  Police measures are not necessary, and they cleave to their ruler of their own volition.  The same principle of freedom is valid for life in general.  We should not woo favor from people.  If a man cultivates within himself the purity and the strength that are necessary for one who is the center of a fellowship, those who are meant for him come of their own accord.”

 

Investment Advice: Invest

 

 

 

SIX IN THE SIXTH PLACE

 

Managerial Issue: The CEO – managing his corporation’s union - hesitating in seeking union.

 

Managerial Lesson: Be decisive. 

 

Managerial Warning: At the sixth stage of the Union Time-Space, the CEO risks hesitating in seeking union at the right time.  Should this be the case, there will be no way he can correct it.

 

Managerial Advice: The Superior CEO knows only an inadequate CEO would hesitate in seeking union with the right employees or with the right corporation.  He knows only regrets will come out of such hesitation.

 

Investment Advice: Do not invest.

 

 

 

 

MANAGERIAL CASES

 

 

 

Kraft Foods Inc.  KFT under CEO Irene Rosenfeld

 

Irene Rosenfeld’s Performance: ROI= 11.70%         Annualized Return=         2.18%        

SPY’s Performance:                            ROI=   6.77%         Annualized Return=         1.28%        

 

Irene Rosenfeld has been CEO since June of 2006.  Her performance has been better than the SPY’s but not as much as the good fortune would indicate in the second line of the Union Time-Space.  She still has time left as CEO.  We will see in the next few years if her performance outdistances that of the SPY as it should. 

 

What is important is that the I Ching indicates she has the mandate of Heaven to do well and therefore can eventually bring about the Union.

 

 

Points the investor should consider:

 

 

1)  THE HEXAGRAM

 

HEXAGRAM 08 – Pi - Holding Together [Union]

 

The waters on the surface of the earth flow together wherever they can, as for example in the ocean, where all the rivers come together.  Symbolically this connotes holding together and the laws that regulate it.  The same idea is suggested by the fact that all the lines of the hexagram except the fifth, the place of the ruler, are yielding.  The yielding lines hold together because they are influenced by a man of strong will in the leading position, a man who is their center of union.  Moreover, this strong and guiding personality in turn holds together with the others, finding in them the complement of his own nature.

 

THE JUDGMENT

 

HOLDING TOGETHER brings good fortune.

Inquire of the Oracle once again

Whether you possess sublimity, constancy, and perseverance;

Then there is no blame. 

Those who are uncertain gradually join.

Whoever comes too late

Meets with misfortune.

 

What is required is that we unite with others, in order that all may complement and aid one another through holding together.  But such holding together calls for a central figure around whom other persons may unite.  To become a center of influence holding people together is a grave matter and fraught with great responsibility.  It requires greatness of spirit, consistency, and strength.  Therefore let him who wishes to gather others about him ask himself whether he is equal to the undertaking, for anyone attempting the task without a real calling for it only makes confusion worse than if no union at all had taken place.

 

But when there is a real rallying point, those who at first are hesitant or uncertain gradually come in of their own accord.  Late-comers must suffer the consequences, for in holding together the question of the right time is also important.  Relationships are formed and firmly established according to definite inner laws.  Common experiences strengthen these ties, and he who comes too late to share in these basic experiences must suffer for it if, as a straggler, he finds the door locked.

 

If a man has recognized the necessity for union and does not feel strong enough to function as the center, it is his duty to become a member of some other organic fellowship.

 

 

2)  THE ADVICE

 

On the earth is water: The image Of HOLDING TOGETHER.

Thus the kings of antiquity

Bestowed the different states as fiefs

And cultivated friendly relations

With the feudal lords.

 

Water fills up all the empty places on the earth and clings fast to it.  The social organization of ancient China was based on this principle of the holding together of dependents and rulers.  Water flows to unite with water, because all parts of it are subject to the same laws.  So too should human society hold together through a community of interests that allows each individual to feel himself a member of a whole.  The central power of a social organization must see to it that every member finds that his true interest lies in holding together with it, as was the case in the paternal relationship between king and vassals in ancient China.

 

 

3)  THE LINES:

 

Six in the second place means:

Hold to him inwardly.

Perseverance brings good fortune.

 

If a person responds perseveringly and in the right way to the behests from above that summon him to action, his relations with others are intrinsic and he does not lose himself.  But if a man seeks association with others as if he were an obsequious office hunter, he throws himself away.  He does not follow the path of the superior man, who never loses his dignity.

 

 

4)  THE MOVING HEXAGRAM

 

HEXAGRAM 29 - K'an - The Abysmal (Water)

 

This hexagram consists of a doubling of the trigram K'an.  It is one of the eight hexagrams in which doubling occurs.  The trigram K'an means a plunging in.  A yang line has plunged in between two yin lines and is closed in by them like water in a ravine.  The trigram K'an is also the middle son.  The Receptive has obtained the middle line of the Creative, and thus K'an develops.  As an image it represents water, the water that comes from above and is in motion on earth in streams and rivers, giving rise to all life on earth.

 

In man's world K'an represents the heart, the soul locked up within the body, the principle of light inclosed in the dark - that is, reason.  The name of the hexagram, because the trigram is doubled, has the additional meaning, "repetition of danger."   Thus the hexagram is intended to designate an objective situation to which one must become accustomed, not a subjective attitude.  For danger due to a subjective attitude means either foolhardiness or guile.  Hence too a ravine is used to symbolize danger; it is a situation in which a man is in the same pass as the water in a ravine, and, like the water, he can escape if he behaves correctly.

 

THE JUDGMENT

 

The Abysmal repeated.

If you are sincere, you have success in your heart,

And whatever you do succeeds.

 

Through repetition of danger we grow accustomed to it.  Water sets the example for the right conduct under such circumstances.  It flows on and on, and merely fills up all the places through which it flows; it does not shrink from any dangerous spot nor from any plunge, and nothing can make it lose its own essential nature.  It remains true to itself under all conditions.  Thus likewise, if one is sincere when confronted with difficulties, the heart can penetrate the meaning of the situation.  And once we have gained inner mastery of a problem, it will come about naturally that the action we take will succeed.  In danger all that counts is really carrying out all that has to be done – thoroughness - and going forward, in order not to perish through tarrying in the danger.

 

Properly used, danger can have an important meaning as a protective measure.  Thus heaven has its perilous height protecting it against every attempt at invasion, and earth has its mountains and bodies of water, separating countries by their dangers.  Thus also rulers make use of danger to protect themselves against attacks from without and against turmoil within.

 

 

THE IMAGE

 

Water flows on uninterruptedly and reaches its goal: The image of the Abysmal repeated.

Thus the superior man walks in lasting virtue

And carries on the business of teaching.

 

Water reaches its goal by flowing continually.  It fills up every depression before it flows on.  The superior man follows its example; he is concerned that goodness should be an established attribute of character rather than an accidental and isolated occurrence.  So likewise in teaching others everything depends on consistency, for it is only through repetition that the pupil makes the material his own.

 

 

Inquire of the Oracle once again

 

When we draw the Union Hexagram, it is customary to ask the Oracle once more to see if the leader who is called to Unite the corporation possess the sublimity, constancy and perseverance necessary to carry out this task:

 

HOLDING TOGETHER brings good fortune. Inquire of the Oracle once again Whether you possess sublimity, constancy, and perseverance; Then there is no blame. Those who are uncertain gradually join. Whoever comes too late Meets with misfortune.

 

 

 

 

Kraft Foods Inc.  KFT CEO Irene Rosenfeld does she possess sublimity, constancy and perseverance?

 

 

Points the investor should consider:

 

 

1)  THE HEXAGRAM

 

HEXAGRAM 50 – Ting - The Caldron

 

The six lines construct the image of Ting, THE CALDRON; at the bottom are the legs, over them the belly, then come the ears (handles), and at the top the carrying rings.  At the same time, the image suggests the idea of nourishment.  The Ting, cast of bronze, was the vessel that held the cooked viands in the temple of the ancestors and at banquets.  The head of the family served the food from the Ting into the bowls of the guests.1 THE WELL (48) likewise has the secondary meaning of giving nourishment, but rather more in relation to the people.  The Ting, as a utensil pertaining to a refined civilization, suggests the fostering and nourishing of able men, which redounded to the benefit of the state. (2)

 

This hexagram and THE WELL are the only two in the Book of Changes that represent concrete, man-made objects.  Yet here too the thought has its abstract connotation.  Sun, below, is wood and wind; Li, above, is flame.  Thus together they stand for the flame kindled by wood and wind, which likewise suggests the idea of preparing food.

 

 

THE JUDGMENT

 

THE CALDRON. 

Supreme good fortune.

Success.

 

While THE WELL relates to the social foundation of our life, and this foundation is likened to the water that serves to nourish growing wood, the present hexagram refers to the cultural superstructure of society.  Here it is the wood that serves as nourishment for the flame, the spirit.  All that is visible must grow beyond itself, extend into the realm of the invisible.  Thereby it receives its true consecration and clarity and takes firm root in the cosmic order.

 

Here we see civilization as it reaches its culmination in religion.  The Ting serves in offering sacrifice to God.  The highest earthly values must be sacrificed to the divine.  But the truly divine does not manifest itself apart from man.  The supreme revelation of God appears in prophets and holy men.  To venerate them is true veneration of God.  The will of God, as revealed through them, should be accepted in humility; this brings inner enlightenment and true understanding of the world, and this leads to great good fortune and success.

 

 

2)  THE ADVICE

 

Fire over wood: The image of THE CALDRON.

Thus the superior man consolidates his fate

By making his position correct.

 

The fate of fire depends on wood; as long as there is wood below, the fire burns above.  It is the same in human life; there is in man likewise a fate that lends power to his life.  And if he succeeds in assigning the right place to life and to fate, thus bringing the two into harmony, he puts his fate on a firm footing.  These words contain hints about the fostering of life as handed on by oral tradition in the secret teachings of Chinese yoga,

 

 

3)  THE LINES:

 

THE LINES

 

Nine in the second place means:

There is food in the ting. 

My comrades are envious,

But they cannot harm me.

Good fortune.

In a period of advanced culture, it is of the greatest importance that one should achieve something significant.  If a man concentrates on such real undertakings, he may indeed experience envy and disfavor, but that is not dangerous.  The more he limits himself to his actual achievements, the less harm can the envious inflict on him.

 

 

Nine in the third place means: 

The handle of the Ting is altered.

One is impeded in his way of life.

The fat of the pheasant is not eaten.

Once rain falls, remorse is spent.

Good fortune comes in the end.

 

The handle is the means for lifting up the Ting.  If the handle is altered, the Ting cannot be lifted up and used, and, sad to say, the delicious food in it, such as pheasant fat, cannot be eaten by anyone.  This describes a man who, in a highly evolved civilization, finds himself in a place where no one notices or recognizes him.  This is a severe block to his effectiveness.  All of his good qualities and gifts of mind thus needlessly go to waste.  But if he will only see to it that he is possessed of something truly spiritual, the time is bound to come, sooner or later, when the difficulties will be resolved and all will go well.  The fall of rain symbolizes here, as in other instances, release of tension.

 

 

Six in the fifth place means: 

The Ting has yellow handles, golden carrying rings. 

Perseverance furthers.

 

Here we have, in a ruling position, a man who is approachable and modest in nature.  As a result of this attitude he succeeds in finding strong and able helpers who complement and aid him in his work.  Having achieved this attitude, which requires constant self-abnegation, it is important for him to hold to it and not to let himself be led astray.

 

 

Nine at the top means:

The Ting has rings of jade. 

Great good fortune. 

Nothing that would not act to further.

 

In the preceding line the carrying rings are described as golden, to denote their strength; here they are said to be of jade.  Jade is notable for its combination of hardness with soft luster.  This counsel, in relation to the man who is open to it, works greatly to his advantage.  Here the counsel is described in relation to the sage who imparts it.  In imparting it, he will be mild and pure, like precious jade.  Thus the work finds favor in the eyes of the Deity, who dispenses great good fortune, and becomes pleasing to men, wherefore all goes well.

 

 

 

 

 

Maxim Integrated Products Inc. MXIM under CEO Tunc Doluca

 

 

Tunc Doluca’s Performance:               ROI=         (25.20%)    Annualized Return=         (6.17%)     

SPY’s Performance:                            ROI= ( 4.77%)        Annualized Return=         (1.07%)        

 

Tunc Doluca has been CEO since January 2007.  His performance has been very poor compared with the SPY’s which underlines the fact he does not possess the qualities which the I Ching would require from someone whose mandate is to manage the Union Time-Space.  A restless CEO can neither bring Union nor deal successfully with the Nuclear Time-Space of the Falling Apart.

 

 

Points the investor should consider:

 

 

 

1)  THE HEXAGRAM

 

(See Above) .

 

 

2)  THE ADVICE

 

(See Above) .

 

 

3)  THE LINES:

 

There are no moving lines.

 

 

4)  THE MOVING HEXAGRAM

 

There is no moving hexagram because there are no moving lines.

 

 

 

Inquire of the Oracle once again

 

(See Above).

 

 

 

 

 

Maxim Integrated Products Inc. MXIM CEO Tunc Doluca - does he possess sublimity, constancy and perseverance

 

 

Points the investor should consider:

 

1)  THE HEXAGRAM

 

HEXAGRAM 32 – Heng - Duration

 

The strong trigram Chen is above, the weak trigram Sun below.  This hexagram is the inverse of the preceding one.  In the latter we have influence, here we have union as an enduring condition.  The two images are thunder and wind, which are likewise constantly paired phenomena.  The lower trigram indicates gentleness within; the upper, movement without.

 

In the sphere of social relationships, the hexagram represents the institution of marriage as the enduring union of the sexes.  During courtship the young man subordinates himself to the girl, but in marriage, which is represented by the coming together of the eldest son and the eldest daughter, the husband is the directing and moving force outside, while the wife, inside, is gentle and submissive.

 

 

THE JUDGMENT

 

DURATION.  Success.  No blame. 

Perseverance furthers.

It furthers one to have somewhere to go.

 

Duration is a state whose movement is not worn down by hindrances.  It is not a state of rest, for mere standstill is regression.  Duration is rather the self-contained and therefore self-renewing movement of an organized, firmly integrated whole, taking place in accordance with immutable laws and beginning anew at every ending.  The end is reached by an inward movement, by inhalation, systole, contraction, and this movement turns into a new beginning, in which the movement is directed outward, in exhalation, diastole, expansion.

 

Heavenly bodies exemplify duration.  They move in their fixed orbits, and because of this their light-giving power endures.  The seasons of the year follow a fixed law of change and transformation, hence can produce effects that endure.

 

So likewise the dedicated man embodies an enduring meaning in his way of life, and thereby the world is formed.  In that which gives things their duration, we can come to understand the nature of all beings in heaven and on earth.

 

 

2)  THE ADVICE

 

Thunder and wind: the image of DURATION.

Thus the superior man stands firm

And does not change his direction.

 

Thunder rolls, and the wind blows; both are examples of extreme mobility and so are seemingly the very opposite of duration, but the laws governing their appearance and subsidence, their coming and going, endure.  In the same way the independence of the superior man is not based on rigidity and immobility of character.  He always keeps abreast of the time and changes with it.  What endures is the unswerving directive, the inner law of his being, which determines all his actions.

 

 

3)  THE LINES:

 

0 Nine in the second place means: 

Remorse disappears.

 

The situation is abnormal.  A man's force of character is greater than the available material power.  Thus he might be afraid of allowing himself to attempt something beyond his strength.  However, since it is the time of DURATION, it is possible for him to control his inner strength and so to avoid excess.  Cause for remorse then disappears.

 

 

Six at the top means:

Restlessness as an enduring condition brings misfortune.

 

There are people who live in a state of perpetual hurry without ever attaining inner composure.  Restlessness not only prevents all thoroughness but actually becomes a danger if it is dominant in places of authority.

 

 

 

 

Electronic Arts Inc. ERTS under CEO John S. Riccitiello

 

 

John S. Riccitiello’s Performance:        ROI=         (53.66%)    Annualized Return=         (16.32%)   

SPY’s Performance:                            ROI= ( 7.22%)        Annualized Return=         (  1.72%)        

 

John S. Riccitiello has been CEO since April 2007.  His performance has been very poor compared with the SPY’s in spite of the fact he seems to have the qualities necessary to manage under the Union Time-Space such as the Power of the Great.  There is still time and he should be able to overcome the Nuclear Time-Space of the Falling Apart.

 

What is interesting is that the way out may consist in the proper interpretation of the MOVING Time-Space from his Union Time-Space.  Perhaps the I Ching is asking him to turn his corporation into a Receptive corporation, that is a corporation that produces what others design rather than a Creative corporation which only designs and let others produce.

 

 

 

 

Points the investor should consider:

 

 

1)  THE HEXAGRAM

 

(See Above)

 

 

2)  THE ADVICE

 

(See Above) .

 

 

3)  THE LINES:

 

0 Nine in the fifth place means:

Manifestation of holding together.

In the hunt the king uses beaters on three sides only

And foregoes game that runs off in front.

The citizens need no warning.

Good fortune.

 

In the royal hunts of ancient China it was customary to drive up the game from three sides, but on the fourth the animals had a chance to run off.  If they failed to do this they had to pass through a gate behind which the king stood ready to shoot.  Only animals that entered here were shot; those that ran off in front were permitted to escape.  This custom accorded with a kingly attitude; the royal hunter did not wish to turn the chase into a slaughter, but held that the kill should consist only of those animals which had so to speak voluntarily exposed themselves.

 

There is depicted here a ruler, or influential man, to whom people are attracted.  Those who come to him he accepts, those who do not come are allowed to go their own way.  He invites none, flatters none - all come of their own free will.  In this way there develops a voluntary dependence among those who hold to him.  They do not have to be constantly on their guard but may express their opinions openly.  Police measures are not necessary, and they cleave to their ruler of their own volition.  The same principle of freedom is valid for life in general.  We should not woo favor from people.  If a man cultivates within himself the purity and the strength that are necessary for one who is the center of a fellowship, those who are meant for him come of their own accord.

 

 

4)  THE MOVING HEXAGRAM

 

 

HEXAGRAM 02 - K'un - THE RECEPTIVE

 

This hexagram is made up of broken lines only.  The broken line represents the dark, yielding, receptive primal power of yin.  The attribute of the hexagram is devotion; its image is the earth.  It is the perfect complement of THE CREATIVE - the complement, not the opposite, 1 for the Receptive does not combat the Creative but complements it.  It represents nature in contrast to spirit, earth in contrast to heaven, space as against time, the female-maternal as against the male-paternal.  However, as applied to human affairs, the principle of this complementary relationship is found not only in the relation between man and woman, but also in that between prince and minister and between father and son.  Indeed, even in the individual this duality appears in the coexistence of the spiritual world and the world of the senses.

 

But strictly speaking there is no real dualism here, because there is a clearly defined hierarchic relationship between the two principles.  In itself of course the Receptive is just as important as the Creative, but the attribute of devotion defines the place occupied by this primal power in relation to the Creative.  For the Receptive must be activated and led by the Creative; then it is productive of good.  Only when it abandons this position and tries to stand as an equal side by side with the Creative, does it become evil.  The result then is opposition to and struggle against the Creative, which is productive of evil to both.

 

 

THE JUDGMENT

 

THE RECEPTIVE brings about sublime success,

Furthering through the perseverance of a mare.

If the superior man undertakes something and tries to lead,

He goes astray;

But if he follows, he finds guidance

It is favorable to find friends in the west and south,

To forego friends in the east and north.

Quiet perseverance brings good fortune.

 

The four fundamental aspects of the Creative - "sublime success, furthering through perseverance"- are also attributed to the Receptive.  Here, however, the perseverance is more closely defined: it is that of a mare.  The Receptive connotes spatial reality in contrast to the spiritual potentiality of the Creative.  The potential becomes real and the spiritual becomes spatial through a specifically qualifying definition.  Thus the qualification, "of a mare," is here added to the idea of perseverance.  The horse belongs to earth just as the dragon belongs to heaven.  Its tireless roaming over the plains is taken as a symbol of the vast expanse of the earth.  This is the symbol chosen because the mare combines the strength and swiftness of the horse with the gentleness and devotion of the cow.

 

Only because nature in its myriad forms corresponds with the myriad impulses of the Creative can it make these impulses real.  Nature's richness lies in its power to nourish all living things; its greatness lies in its power to give them beauty and splendor.  Thus it prospers all that lives.  It is the Creative that begets things, but they are brought to birth by the Receptive.  Applied to human affairs, therefore, what the hexagram indicates is action in conformity with the situation.  The person in question is not in an independent position, but is acting as an assistant.  This means that he must achieve something.  It is not his task to try to lead - that would only make him lose the way - but to let him be led.  If he knows how to meet fate with an attitude of acceptance, he is sure to find the right guidance.  The superior man lets himself be guided; he does not go ahead blindly, but learns from the situation what is demanded of him and then follows this intimation from fate.

 

Since there is something to be accomplished, we need friends and helpers in the hour of toil and effort, once the ideas to be realized are firmly set.  The time of toil and effort is indicated by the west and the south, for west and south symbolize the place where the Receptive works for the Creative, as nature does in summer and autumn.  If in that situation one does not mobilize all one's powers, the work to be accomplished will not be done.  Hence to find friends there means to find guidance.  But in addition to the time of toil and effort, there is also a time of planning, and for this we need solitude.  The east symbolizes the place where a man receives orders from his master and the north the place where he reports on what he has done.  At that time he must be alone and objective.  In this sacred hour he must do without companions so that the purity of the moment may not be spoiled by factional hates and favoritism.

 

 

THE IMAGE

 

The earth's condition is receptive devotion.

Thus the superior man who has breadth of character

Carries the outer world.

 

Just as there is only one heaven, so too there is only one earth.  In the hexagram of the heaven the (doubling, of the trigram implies duration in time, but in the hexagram of earth the doubling connotes the solidity and extension in space by virtue of which the earth is able to carry and preserve all things that live and move upon it.  The earth in its devotion carries all things, good and evil, without exception.  In the same way the superior man gives to his character breadth, purity, and sustaining power, so that he is able both to support and to bear with people and things.

 

 

 

Inquire of the Oracle once again

 

When we draw the Union Hexagram, it is customary to ask the Oracle once more to see if the leader who is called to Unite the corporation possess the sublimity, constancy and perseverance necessary to carry out this task:

 

 

Electronic Arts Inc. ERTS under CEO John S. Riccitiello-does he possess sublimity, constancy and perseverance

 

 

Points the investor should consider:

 

1)  THE HEXAGRAM

 

HEXAGRAM 34 - Ta Chuang - The Power of the Great

 

The great lines, that is, the light, strong lines, are powerful.  Four light lines have entered the hexagram from below and are about to ascend higher.  The upper trigram is Chen, the Arousing; the lower is Ch'ien, the Creative.  Ch'ien is strong, Chen produces movement.  The union of movement and strength gives the meaning of THE POWER OF THE GREAT.  The hexagram is linked with the second month (March April).

 

THE JUDGMENT

THE  POWER OF THE GREAT. 

Perseverance furthers.

 

The hexagram points to a time when inner worth mounts with great force and comes to power.  But its strength has already passed beyond the median line, hence there is danger that one may rely entirely on one's own power and forget to ask what is right.  There is danger too that, being intent on movement, we may not wait for the right time.  Therefore the added statement that perseverance furthers.  For that is truly great power which does not degenerate into mere force but remains inwardly united with the fundamental principles of right and of justice.  When we understand this point - namely, that greatness and justice must be indissoluble united - we understand the true meaning of all that happens in heaven and on earth.

 

 

2)  THE ADVICE

 

Thunder in heaven above: The image of THE POWER OF THE GREAT.

Thus the superior man does not tread upon paths

That do not accord with established order.

 

Thunder - electrical energy - mounts upward in the spring.  The direction of this movement is in harmony with that of the movement of heaven.  It is therefore a movement in accord with heaven, producing great power.  However, true greatness depends on being in harmony with what is right.  Therefore in times of great power the superior man avoids doing anything that is not in harmony with the established order.

 

 

3)  THE LINES:

 

There are no moving lines and therefore no moving hexagram