HEXAGRAM 09: ORIGINAL, INTERPRETATION AND CASES

 

 

 

HEXAGRAM 09 - Hsiao Ch'u - The Taming Power of the Small

 

Above SUN            THE GENTLE, WIND

Below CH'IEN         THE CREATIVE. HEAVEN

 

This hexagram means the force of the small –

the power of the shadowy - that

·        restrains,

·        tames,

·        impedes. 

A weak line in the fourth place, that of the minister, 1 holds the five strong lines in check. 

In the Image it is the wind blowing across the sky. 

The wind

·        restrains the clouds, the rising breath of the Creative, and

·        makes them grow dense,

·        but as yet is not strong enough to turn them to rain. 

 

The hexagram presents a configuration of circumstances in which

a strong element is temporarily held in leash by a weak element. 

It is only through gentleness that this can have a successful outcome.

 

THE JUDGMENT

 

THE TAMING POWER, OF THE SMALL 

Has success. 

Dense clouds, no rain from our western region.

 

This image refers to the state of affairs in China at the time when King Wen,

who came originally from the west,

was in the east at the court of the reigning tyrant Chou Hsin. 

The moment for action on a large scale has not yet arrived. 

King Wen could only keep the tyrant somewhat in check by friendly persuasion. 

Hence the image of many clouds, promising moisture and blessing to the land,

although as yet no rain falls.

The situation is not unfavorable;

there is a prospect of ultimate success,

·        but there are still obstacles in the way, and

·        we can merely take preparatory measures. 

 

Only through the small means of friendly persuasion can we exert any influence. 

The time has not yet come for sweeping measures. 

However, we may be able, to a limited extent, to act as a restraining and subduing influence. 

To carry out our purpose we need

·        firm determination within and

·        gentleness and adaptability in external relations.

 

THE IMAGE

 

The wind drives across heaven: The image of THE TAMING POWER OF THE SMALL. 

Thus the superior man

Refines the outward aspect of his nature.

 

The wind can indeed drive the clouds together in the sky;

yet, being nothing but air, without solid body,

it does not produce great or lasting effects. 

So also an individual,

in times when he can produce no great effect in the outer world,

can do nothing except refine the expression of his nature in small ways.

 

THE LINES

 

Nine at the beginning means:

Return to the way.

How could there be blame in this? 

Good fortune.

 

It lies in the nature of a strong man to press forward. 

In so doing he encounters obstructions. 

Therefore he returns to the way suited to his situation,

where he is free to advance or to retreat. 

In the nature of things this will bring good fortune,

for it is wise and reasonable not to try to obtain anything by force.

 

Nine in the second place means: 

He allows himself to be drawn into returning. 

Good fortune.

 

One would like to press forward,

but before going farther

one sees from the example of others like oneself that this way is blocked. 

In such a case,

if the effort to push forward is not in harmony with the time, 2

a reasonable and resolute man will not expose himself to a personal rebuff,

but will retreat with others of like mind. 

This brings good fortune,

because he does others of like not needlessly jeopardize himself.

 

Nine in the third place means: 

The spokes burst out of the wagon wheels.

Man and wife roll their eyes.

 

Here an attempt is made to press forward forcibly,

in the obstructing that the obstructing power is slight.

But since,

under the circumstances power actually lies with the weak,

this sudden offensive is doomed to failure. 

External conditions hinder the advance,

just as loss of the wheel spokes stops the progress of a wagon.

We do not yet heed this hint from fate,

hence there are annoying arguments like those of a married couple.

Naturally this is not a favorable state of things,

for though the situation may enable the weaker side to hold its ground,

the difficulties are too numerous to permit of a happy result. 

In consequence

even the strong man cannot so use his power

as to exert the right influence on those around him. 

·        He experiences a rebuff where he expected an easy victory, and

·        he thus compromises his dignity.

 

Six in the fourth place means:

If you are sincere,

·        blood vanishes and

·        fear gives way.

No blame.

 

If

·        one is in the difficult and responsible position of counselor to a powerful man,

·        one should restrain him in such a way that right may prevail. 

Therein lies a danger so great that the threat of actual bloodshed may arise. 

Nonetheless,

the power of disinterested truth is greater than all these obstacles. 

It carries such weight that

·        the end is achieved, and

·        all danger of bloodshed and all fear disappear.

 

Nine in the fifth place means:

If you are sincere and loyally attached,

You are rich in your neighbor.

 

Loyalty leads to firm ties because it means that each partner complements the other. 

·        In the weaker person loyalty consists in devotion,

·        in the stronger it consists in trustworthiness. 

This relation of mutual reinforcement leads to a true wealth

that is all the more apparent because it

·        is not selfishly hoarded but

·        is shared with friends. 

Pleasure shared is pleasure doubled.

 

Nine at the top means: 

The rain comes, there is rest.

This is due to the lasting effect of character.

Perseverance brings the woman into danger.

The moon is nearly full.

If the superior man persists,

Misfortune comes.

 

Success is at hand. 

The wind has driven up the rain. 

A fixed standpoint has been reached. 

This has come about through the cumulating of small effects produced by

reverence for a superior character. 

But a success thus secured bit by bit calls for great caution. 

It would be a dangerous illusion for anyone to think he could presume upon it. 

The female principle,

the weak element that has won the victory,

should never persist in vaunting it - that would lead to danger. 

·        The dark power in the moon is strongest when the moon is almost full. 

·        When it is full and directly opposite the sun, its waning is inevitable. 

Under such circumstances one must be content with what has been achieved. 

To advance any farther,

before the appropriate time has come,

would lead to misfortune.

 

1.[See P. 36o.]

2. [See P. 359 for an explanation of what is meant by the " time. "]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

09 - THE TAMING POWER OF THE SMALL

 

 

 

MANAGERIAL ISSUE

 

The CEO – managing superior forces (executives/corporations) in spite of his lack of power.

 

Hexagram 9 describes the nature of the power of a really powerless CEO and how he manages the stronger executives around him through the use of his skills and persuasion.  The powerful managers or his fellow CEOs in the industry might want to impose their ideas on how to run the corporation, but the CEO, in spite of his weakness, has the ability to impose his own ideas.  Is this CEO convinced the executives are in essence no good for the corporation?

 

This CEO has been elevated to his high position without earning the respect and the backing of his colleagues. He is a powerless CEO, and he is in a weak position.  This CEO, who is surrounded by managers with greater capacity, is someone who lacks in depth knowledge of the business he is in, and all the employees know this.  Nevertheless, he has some qualities, which he must learn to put to good use if he wants to succeed.

 

This Time-Space represents in many ways the “tyranny of the midget” - for instance, Bear Sterns during the Long Term Capital work out in 1998.  Bear Sterns exposure represented but a small portion of LTC’s total liability.  Yet Bear Sterns gave all the other financial institutions a big headache by holding back any collective agreement.  Its strategy was to force the larger institutions to buy its exposure out.  The other financial institutions did comply with this arrogant request but they also placed Bear Sterns on a blacklist.  During the crash of 2008, they made sure Bear Sterns did not survive.    The secret of having THE TAMING POWER OF THE SMALL is not to exercise it at all.  Everyone hates the undeserved Taming Power of the Small or the “tyranny of the midget”.

 

 

 

MANAGERIAL LESSON:

 

The Superior CEO:

 

1)   Earns the respect of his colleagues and fellow employees.  The way to do it is to keep a humble attitude and to lean on his personal qualities.  He might not know this but the I Ching believes this CEO has some personal qualities, which if he were to put to good use would enable him to create a winning team. 

 

2)   Prepares for better business opportunities.  The times for this corporation are not all that bad.  There is even a possibility the CEO might achieve his objectives.  However, this is clearly not the moment for the CEO to carry out any grand projects.  Instead, he must prepare for better opportunities. He may counterbalance any YIN or YANG position the other executives may have, but he must do so with the two elements the I Ching recommends the most in this particular case - 

 

a.   firm determination within and                              (within the Corporation)    

b.   gentleness and adaptability in external relations” (without the Corporation)

 

3)   Realizes his success is directly related to his capacity in winning the good will of the other managers who are clearly his superiors in know-how. 

 

·        The I Ching says (*): “The wind can indeed drive the clouds together in the sky; yet, being nothing but air, without solid body, it does not produce great or lasting effects.  So also an individual, in times when he can produce no great effect in the outer world, can do nothing except refine the expression of his nature in small ways.”

 

 

 

INVESTMENT ADVICE:

 

For the investor, the Taming Power of the Small Time–Space is in general relatively favorable. 

 

By itself (no lines), the Hexagram points to success provided the CEO overcomes many obstacles through diplomacy; however, the investor should keep in mind that a Time–Space of a powerless CEO is not the best of times to invest.

 

THE TAMING POWER, OF THE SMALL 

Has success. 

Dense clouds, no rain from our western region.

 

This image refers to the state of affairs in China at the time when King Wen, who came originally from the west, was in the east at the court of the reigning tyrant Chou Hsin.  The moment for action on a large scale has not yet arrived.  King Wen could only keep the tyrant somewhat in check by friendly persuasion.  Hence the image of many clouds, promising moisture and blessing to the land, although as yet no rain falls.  The situation is not unfavorable; there is a prospect of ultimate success, but there are still obstacles in the way, and we can merely take preparatory measures. 

 

Only through the small means of friendly persuasion can we exert any influence.  The time has not yet come for sweeping measures.  However, we may be able, to a limited extent, to act as a restraining and subduing influence.  To carry out our purpose we need firm determination within and gentleness and adaptability in external relations.

 

 

Three out of the six lines are positive for investing (1, 2, and 5).  This makes this Time Space relatively positive.

 

 

The following examples are those of corporations under the Taming Power of the Small   Time-Space.

 

 

 

THE LINES

 

 

 

NINE IN THE FIRST PLACE

 

Managerial Issue:         The CEO – managing superior forces (executives/corporations) in spite of his lack of power- refraining from using whatever little strength his position grants him.

 

Managerial Lesson: Be friendly. 

 

Managerial Warning: At the first stage of the Taming Power of the Small Time-Space, the powerless CEO must recognize he must never use force.

 

Managerial Advice: The Superior CEOs understands, the proper position is to be able to go forward as well as backwards.  He knows the last thing a CEO wants when dealing from a powerless position is to try and move forward forcing his way out.  A powerless CEO must be subtle, tactful and friendly according to the situation.  He must fall back to his original position so that he may later decide whether to advance or retreat.  If he does, he will be successful.

 

Investment Advice: Invest 

 

 

 

NINE IN THE SECOND PLACE

 

Managerial Issue:         The CEO – managing superior forces (executives/corporations) in spite of his lack of power – gracefully withdrawing.

 

Managerial Lesson: Be attentive. 

 

Managerial Warning: At the second stage of the Taming Power of the Small Time-Space, the CEO, by observing his fellow CEOs, might be lucky enough to realize in the nick of time that the goals he has imposed upon the corporation are the wrong ones.  He should accept this fact in good manner and withdraw.  Furthermore, such goals might not count with the backing of the other executives.  His policies are out of sync with the times. 

 

Managerial Advice: The Superior CEO always listens.  He knows that even a powerless CEO can run a corporation if he knows how to listen.  Listening is one of the greatest qualities of any CEO.   This humble attitude practically always guarantees success. By listening, he avoids the destruction of the corporation and of himself. 

 

Investment Advice: Invest. 

 

 

 

NINE IN THE THIRD PLACE

 

Managerial Issue:         The CEO – managing superior forces (executives/corporations) in spite of his lack of power – pushing the issue forcefully.

Managerial Lesson: Be humble. 

 

Managerial Warning: At the third stage of the Taming Power of the Small Time-Space, the CEO perceives his powerlessness and, out of pride, decides to impose his goals in a forceful manner.  Unfortunately his timing (as well as his attitude) is wrong. 

 

Managerial Advice: The Superior CEO’s humility will not allow him to be overbearing.  He knows a powerless CEO should not impose his will when external conditions overwhelm him.  He cannot achieve his goals because of external conditions - the present economic circumstances or a downturn in the industry.  If a great and powerful CEO would not dare to impose his goals but rather uses persuasion, why should a powerless CEO who knows little about the industry be willing to do so?  An arrogant attitude causes a great opposition against the CEO because his supposedly easy victory did not materialize. 

 

This is Apple’s John Sculley when it introduced the Newton project - a CEO who knows nothing of technology, surrounded by executives who do, trying to force a project that is going nowhere. The time was not the proper time.

 

Investment advice: Do not invest

 

 

 

SIX IN THE FOURTH PLACE

 

Managerial Issue:         The CEO – managing superior forces (executives/corporations) in spite of his lack of power - holding back the Board of Directors from executing the wrong project.

 

Managerial Lesson: Be sincere. 

 

Managerial Warning: At the fourth stage of the Taming Power of the Small Time-Space, the CEO must realize his position is very delicate.  Not only his position is powerless but also the Board of Directors has entrusted him with carrying out very aggressive goals.  How can a powerless CEO use his influences to keep the Board of Directors from executing a project he believes to be disastrous for his corporation? 

 

Managerial Advice: The Superior CEO is honest.  He will tell them diplomatically if possible, their project represents a real danger to the corporation.  He will do so even if it costs him his job.  An act of sincerity behind any motion to stop a project which will harm the corporation is greater than the CEO’s powerlessness.  The key to success lies in realizing there is a real possibility of failure, even if in this particular case his own internal strength might lead him to success. 

 

This is Viacom’s CEO Tom Freston making sure Viacom did not incur a loss of $600 million by buying out MySpace.  His decision was the right one as a few years later MySpace was worthless.  Nevertheless, Sumner Redstone fired him for not buying out MySpace.

 

Investment Advice: Do not invest.

 

 

 

 

NINE IN THE FIFTH PLACE

 

Managerial Issue: The CEO – managing superior forces (executives/corporations) in spite of his lack of power - bonding with stronger executives/corporations for their mutual benefit.

 

Managerial Lesson: Be conciliatory. 

 

Managerial Warning: At the fifth stage of the Taming Power of the Small Time-Space, the CEOs task is to tie the weak with the strong so that they may complement each other.

 

Managerial Advice: The Superior CEO will reach over across to the stronger executives/corporations and win them over to his cause.  This means sharing power and gain.  In this way all parties will pull the same way because they have much to gain from cooperation.  If he is loyal to them, they will be devoted to him.  If they are loyal to him, they will prove their trustworthiness to him.

 

Investment Advice: Invest.

 

 

 

NINE IN THE SIXTH PLACE

 

Managerial Issue: The CEO – managing superior forces (executives/corporations) in spite of his lack of power - dealing with an apparent victory obtained from a powerless position.

 

Managerial Lesson: Be real. 

 

Managerial Warning: At the sixth stage of the Taming Power of the Small Time-Space, the CEO must realize that any victory obtained from a weak position should be seen for what it really is. 

 

Managerial Advice: The Superior CEO is down to earth.  He would never claim a victory as his own if it was won without a clear mandate and mainly because of the support of executives who are clearly more knowledgeable than him.  This is not a grand victory but one won by small steps.  It is only a mirage and might turn out to be a fleeting victory.  The Superior CEO honestly and openly recognizes when he is not the real source of a victory and would never flaunt it as his own. 

 

This is the highest point this CEO can reach.  From now on whatever small power he may have will be diminished.

 

Investment advice: Do not invest.

 

 

 

 

 

 

 

 

MANAGERIAL CASES

 

 

 

Intel Corporation INTC under CEO Paul S. Otellini

 

 

Paul S. Otellini’s Performance:   ROI= (13.11%)         Annualized Return=         ( 2.24%)    

SPY’s Performance:                            ROI=   11.93%       Annualized Return=            1.84%        

 

Paul S. Otellini has been CEO since May of 2005.  Since then, his performance has been below that of the SPY’s.  He is having a difficult time overcoming the Nine at the Top.  He is a talented CEO (Superior man), but by advancing before the appropriate time he is leading the corporation to its misfortune.

 

 

Points the investor should consider:

 

 

1)  THE HEXAGRAM

 

HEXAGRAM 09 - Hsiao Ch'u - The Taming Power of the Small

 

This hexagram means the force of the small - the power of the shadowy - that restrains, tames, impedes.  A weak line in the fourth place, that of the minister, 1 holds the five strong lines in check.  In the Image it is the wind blowing across the sky.  The wind restrains the clouds, the rising breath of the Creative, and makes them grow dense, but as yet is not strong enough to turn them to rain. 

 

The hexagram presents a configuration of circumstances in which a strong element is temporarily held in leash by a weak element.  It is only through gentleness that this can have a successful outcome.

 

 

THE JUDGMENT

 

THE TAMING POWER, OF THE SMALL 

Has success. 

Dense clouds, no rain from our western region.

 

This image refers to the state of affairs in China at the time when King Wen, who came originally from the west, was in the east at the court of the reigning tyrant Chou Hsin.  The moment for action on a large scale has not yet arrived.  King Wen could only keep the tyrant somewhat in check by friendly persuasion.  Hence the image of many clouds, promising moisture and blessing to the land, although as yet no rain falls.  The situation is not unfavorable; there is a prospect of ultimate success, but there are still obstacles in the way, and we can merely take preparatory measures. 

 

Only through the small means of friendly persuasion can we exert any influence.  The time has not yet come for sweeping measures.  However, we may be able, to a limited extent, to act as a restraining and subduing influence.  To carry out our purpose we need firm determination within and gentleness and adaptability in external relations.

 

 

2)  THE ADVICE

 

The wind drives across heaven: The image of THE TAMING POWER OF THE SMALL. 

Thus the superior man

Refines the outward aspect of his nature.

 

The wind can indeed drive the clouds together in the sky; yet, being nothing but air, without solid body, it does not produce great or lasting effects.  So also an individual, in times when he can produce no great effect in the outer world, can do nothing except refine the expression of his nature in small ways.

 

 

3)  THE LINES:

 

Nine at the top means: 

The rain comes, there is rest.

This is due to the lasting effect of character.

Perseverance brings the woman into danger.

The moon is nearly full.

If the superior man persists,

Misfortune comes.

 

Success is at hand.  The wind has driven up the rain.  A fixed standpoint has been reached.  This has come about through the cumulating of small effects produced by reverence for a superior character.  But a success thus secured bit by bit calls for great caution.  It would be a dangerous illusion for anyone to think he could presume upon it.  The female principle, the weak element that has won the victory, should never persist in vaunting it - that would lead to danger.  The dark power in the moon is strongest when the moon is almost full.  When it is full and directly opposite the sun, its waning is inevitable.  Under such circumstances one must be content with what has been achieved.  To advance any farther, before the appropriate time has come, would lead to misfortune.

 

 

4)  THE MOVING HEXAGRAM

 

HEXAGRAM 05 – Hsu - Waiting (Nourishment)

 

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 grows agitated and 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.

 

 

 

 

Broadcom Corp. BRCM under CEO Scott A. McGregor

 

 

Scott A. McGregor’s Performance:       ROI=         74.19%       Annualized Return=         8.83%        

SPY’s Performance:                            ROI=         12.57%       Annualized Return=         1.82%        

 

Scott A. McGregor has been CEO since January 2005.  Since then, his performance has been much better that the SPY’s.  The two lines, both of which refer to Good Fortune, are helping him substantially in achieving such performance.  No doubt he has the Qi and the mandate of Heaven.

 

 

Points the investor should consider:

 

 

1)  THE HEXAGRAM

 

(See Above)

 

 

2)  THE ADVICE

 

(See Above)

 

 

3)  THE LINES:

 

Nine at the beginning means:

Return to the way.

How could there be blame in this? 

Good fortune.

 

It lies in the nature of a strong man to press forward.  In so doing he encounters obstructions.  Therefore he returns to the way suited to his situation, where he is free to advance or to retreat.  In the nature of things this will bring good fortune, for it is wise and reasonable not to try to obtain anything by force.

 

 

Nine in the second place means: 

He allows himself to be drawn into returning. 

Good fortune.

 

One would like to press forward, but before going farther one sees from the example of others like oneself that this way is blocked.  In such a case, if the effort to push forward is not in harmony with the time, 2 a reasonable and resolute man will not expose himself to a personal rebuff, but will retreat with others of like mind.  This brings good fortune, because he does others of like not needlessly jeopardize himself.

 

 

4)  THE MOVING HEXAGRAM

 

 

HEXAGRAM 53 – Chien - Development (Gradual Progress)

 

This hexagram       is made up of Sun (wood, penetration) above, i.e., without, and Ken (mountain, stillness) below, i.e., within.  A tree on a mountain develops slowly according to the law of its being and consequently stands firmly rooted.  This gives the idea of a development that proceeds gradually, step by step.  The attributes of the trigrams also point to this: within is tranquility, which guards against precipitate actions, and without is penetration, which makes development and progress possible.

 

 

THE JUDGMENT

 

DEVELOPMENT. 

The maiden

Is given in marriage.

Good fortune.

Perseverance furthers.

 

The development of events that leads to a girl's following a man to his home proceeds slowly.  The various formalities must be disposed of before the marriage takes place.  This principle of gradual development can be applied to other situations as well; it is always applicable where it is a matter of correct relationships of co-operation, as for instance in the appointment of an official.  The development must be allowed to take its proper course.  Hasty action would not be wise.  This is also true, finally, of any effort to exert influence on others, for here too the essential factor is a correct way of development through cultivation of one's own personality. 

 

No influence such as that exerted by agitators has a lasting effect.  Within the personality too, development must follow the same course if lasting results are to be achieved.  Gentleness that is adaptable, but at the same time penetrating, is the outer form that should proceed from inner calm.  The very gradualness of the development makes it necessary to have perseverance, for perseverance alone prevents slow progress from dwindling to nothing.

 

 

THE IMAGE

 

On the mountain, a tree: The image of DEVELOPMENT.

Thus the superior man abides in dignity and virtue,

In order to improve the mores.

 

The tree on the mountain is visible from afar, and its development influences the landscape of the entire region.  It does not shoot up like a swamp plant; its growth proceeds gradually.  Thus also the work of influencing people can be only gradual.  No sudden influence or awakening is of lasting effect.  Progress must be quite gradual, and in order to obtain such progress in public opinion and in the mores of the people, it is necessary for the personality to acquire influence and weight.  This comes about through careful and constant work on one's own moral development.

 

 

 

 

Liberty Media Interactive LINTA under CEO Gregory B. Maffei

 

 

Gregory B. Maffei’s Performance:        ROI=         (7.28%)      Annualized Return=         (1.45%)     

SPY’s Performance:                            ROI= 3.36%                  Annualized Return=           0.64%        

 

Gregory B. Maffei has been CEO since February 2006.  Since then his performance has been lagging the performance of the SPY’s in spite of the Good Fortune line.  Perhaps he might have a difficult time managing his Moving Time-Space.  In any event, he still has time to correct his performance.

Points the investor should consider:

 

 

1)  THE HEXAGRAM

 

(See Above)

 

 

2)  THE ADVICE

 

(See Above)

 

 

3)  THE LINES:

 

Nine at the beginning means:

Return to the way.

How could there be blame in this? 

Good fortune.

 

It lies in the nature of a strong man to press forward.  In so doing he encounters obstructions.  Therefore he returns to the way suited to his situation, where he is free to advance or to retreat.  In the nature of things this will bring good fortune, for it is wise and reasonable not to try to obtain anything by force.

 

 

4)  THE MOVING HEXAGRAM

 

HEXAGRAM 57 – Sun - The Gentle (The         Penetrating, Wind)

 

Sun is one of the eight doubled trigrams.  It is the eldest daughter and symbolizes wind or wood; it has for its attribute gentleness, which nonetheless penetrates like the wind or like growing wood with its roots.

 

The dark principle, in itself rigid and immovable, is dissolved by the penetrating light principle, to which it subordinates itself in gentleness.  In nature, it is the wind that disperses the gathered clouds, leaving the sky clear and serene.  In human life it is penetrating clarity of judgment that thwarts all dark hidden motives.  In the life of the community it is the powerful influence of a great personality that uncovers and breaks up those intrigues which shun the light of day.

 

 

THE JUDGMENT

 

THE GENTLE. 

Success through what is small.

It furthers one to have somewhere to go.

It furthers one to see the great man.

 

Penetration produces gradual and inconspicuous effects.  It should be effected not by an act of violation but by influence that never lapses.  Results of this kind are less striking to the eye than those won by surprise attack, but they are more enduring and more complete.  If one would produce such effects one must have a dearly defined goal, for only when the penetrating influence works always in the same direction can the object be attained.  Small strength can achieve its purpose only by subordinating itself to an eminent man who is capable of creating order.

 

 

THE IMAGE

 

Winds following one upon the other:  The image of THE GENTLY PENETRATING.

Thus the superior man

Spreads his commands abroad

And carries out his undertakings.

 

The penetrating quality of the wind depends upon its ceaselessness.  This is what makes it so powerful; time is its instrument.  In the same way the ruler's thought should penetrate the soul of the people.  This too requires a lasting influence brought about by enlightenment and command.  Only when the command has been assimilated by the people is action in accordance with it possible.   Action without preparation of the ground only frightens and repels.

 

 

 

 

Ross Stores Inc. ROST under CEO Michael Balmuth

 

 

Michael Balmuth’s Performance: ROI= 1,663.41%         Annualized Return=         21.23%      

SPY’s Performance:                            ROI=      94.30%       Annualized Return=           4.56%        

 

Michael Balmuth has been CEO since September 1996.  Since then, his performance proves he has been a Superior CEO.

 

Because he has been CEO for a long time, we asked the Oracle once more about his future Time-Space.  It is The Taming Power of the Small.

 

 

Points the investor should consider:

 

 

1)  THE HEXAGRAM

 

(See Above)

 

 

2)  THE ADVICE

 

(See Above)

 

 

3)  THE LINES:

 

Nine in the fifth place means:

If you are sincere and loyally attached,

You are rich in your neighbor.

 

Loyalty leads to firm ties because it means that each partner complements the other.  In the weaker person loyalty consists in devotion, in the stronger it consists in trustworthiness.  This relation of mutual reinforcement leads to a true wealth that is all the more apparent because it is not selfishly hoarded but is shared with friends.  Pleasure shared is pleasure doubled.

 

This line is the perfect interpretation of what Ross Stores does for its customers.  Even though the language of the I Ching is thousands of years old, it is amazing that it should counsel a modern CEO on how to get rich:

·        By making its customers (neighbors) rich,

·        By being devoted and trustworthy of its customers, and

·        By not selfishly hoarding its savings but to transfer them onto its customers. 

 

AMAZING!!!!

 

 

4)  THE MOVING HEXAGRAM

 

HEXAGRAM 26 - Ta Ch’u - The Taming Power of the Great

 

The Creative is tamed by Ken, Keeping Still.  This produces great power, a situation in contrast to that of the ninth hexagram, Hsiao Ch'u, THE TAMING POWER OF THE SMALL, in which the Creative is tamed by the Gentle alone.  There one weak line must tame five strong lines, but here four strong lines are restrained by two weak lines; in addition to a minister, there is a prince, and the restraining power therefore is far stronger.

 

The hexagram has a threefold meaning, expressing different aspects of the concept Holding firm.  Heaven within the  mountain gives the idea of holding firm in the sense of holding together; the trigram Ken, which holds the trigram Ch'ien still, gives the idea of holding firm in the sense of holding back; the third idea is that of holding firm in the sense of caring for and nourishing.  This last is suggested by the fact that a strong line at the top, which is the ruler of the hexagram, is honored and tended as a sage.  The third of these meanings also attaches specifically to this strong line at the top, which represents the sage.

 

 

THE JUDGMENT

 

THE TAMING POWER OF THE GREAT. 

Perseverance furthers.

Not eating at home brings good fortune. 

It furthers one to cross the great water.

 

To hold firmly to great creative powers and store them up, as set forth in this hexagram, there is need of a strong, clearheaded man who is honored by the ruler.  The trigram Ch'ien points to strong creative power; Ken indicates firmness and truth.  Both point to light and clarity and to the daily renewal of character.  Only through such daily self-renewal can a man continue at the height of his powers.  Force of habit helps to keep order in quiet times; but in periods when there is a great storing up of energy, everything depends on the power of the personality.  However, since the worthy are honored, as in the case of the strong personality entrusted with leadership by the ruler, it is an advantage not to eat at home but rather to earn one's bread by entering upon public office.  Such a man is in harmony with heaven; therefore even great and difficult undertakings, such as crossing the great water, succeed.

 

 

THE  IMAGE

 

Heaven within the mountain:

The image of THE TAMING POWER OF THE GREAT.

Thus the superior man acquaints himself with many sayings of antiquity

And many deeds of the past, In order to strengthen his character thereby.

 

Heaven within the mountain points to hidden treasures.  In the words and deeds of the past there lies hidden a treasure that men may use to strengthen and elevate their own characters.  The way to study the past is not to confine oneself to mere knowledge of history but, through application of this knowledge, to give actuality to the past.