HEXAGRAM 10: ORIGINAL, INTERPRETATION AND CASES

HEXAGRAM 10 – Lu - Treading (Conduct)

Above CH'IEN THE CREATIVE, HEAVEN

Below TUI THE JOYOUS, LAKE

1. The name of the hexagram means on the one hand the right way of conducting oneself.

· Heaven, the father, is above,

and

· the lake, the youngest daughter, is below.

This shows the difference between high and low, upon which

composure, correct social conduct, depends.

2. On the other hand, the word for the name of the hexagram, TREADING, 1

means literally treading upon something.

The small and cheerful [Tui] treads upon the large and strong [Ch'ien].

The direction of movement of the two primary trigrams is upward.

The fact that the strong treads on the weak is not mentioned in the Book of Changes,

because it is taken for granted.

For the weak to take a stand against the strong is not dangerous here,

because it happens in good humor [Tui] and without presumption,

so that

the strong man is not irritated but takes it all in good part.

THE JUDGMENT

TREADING.

Treading upon the tail of the tiger.

It does not bite the man.

Success.

The situation is really difficult.

That which is strongest and that which is weakest are close together.

· The weak follows behind the strong and worries it.

· The strong, however, acquiesces and does not hurt the weak,

because the contact is in good humor and harmless.

In terms of a human situation, one is handling wild, intractable people. In such a case one's purpose will be achieved if one behaves with decorum. Pleasant manners succeed even with irritable people.

THE IMAGE

Heaven above, the lake below: The image Of TREADING.

Thus the superior man

· discriminates between high and low,

And thereby

· fortifies the thinking of the people.

Heaven and the lake show a difference of elevation that inheres in the natures of the two,

hence

no envy arises.

Among mankind also there are necessarily differences of elevation;

it is impossible to bring about universal equality.

But it is important that differences in social rank should not be arbitrary and unjust,

for if this occurs, envy and class struggle are the inevitable consequences.

· If, on the other hand, external differences in rank correspond with differences in inner worth,

and

· if inner worth forms the criterion of external rank,

people acquiesce and order reigns in society.

THE LINES

Nine at the beginning means:

Simple conduct.

Progress without blame.

The situation is one in which we are still not bound by any obligations of social intercourse.

If our conduct is simple, we remain free of them.

We can quietly follow our predilections

as long as we

· are content

and

· make no demands on people.

The meaning of the hexagram is not standstill but progress.

A man finds himself in an altogether inferior position at the start.

However, he has the inner strength that guarantees progress.

If he can be content with simplicity, he can make progress without blame.

1. When a man is dissatisfied with modest circumstances,

he is restless and ambitious and tries to advance,

not for the sake of accomplishing anything worthwhile, but

merely in order to escape from lowliness and poverty by dint of his conduct.

Once his purpose is achieved,

he is certain to become arrogant and luxury-loving.

Therefore blame attaches to his progress.

2. 2 On the other hand, a man who is good at his work is content to behave simply.

He wishes to make progress in order to accomplish something.

When he attains his goal, he does something worthwhile, and all is well.

Nine in the second place means:

Treading a smooth, level course.

The perseverance of a dark man(2)

Brings good fortune.

The situation of a lonely sage is indicated here.

remains withdrawn from the bustle of life,

seeks nothing,

asks nothing of anyone, and

is not dazzled by enticing goals.

is true to himself and

travels through life unassailed, on a level road.

Since

· he is content and does not challenge fate,

· he remains free of entanglements.

0 Six in the third place means:

· A one-eyed man is able to see,

· A lame man is able to tread.

He treads on the tail of the tiger.

The tiger bites the man.

Misfortune.

Thus does a warrior act on behalf of his great prince.

· A one-eyed man can indeed see, but not enough for clear vision.

· A lame man can indeed tread, but not enough to make progress.

in spite of such defects

a man considers himself strong and consequently exposes himself to danger,

he is inviting disaster, for he is undertaking something beyond his strength .

This reckless way of plunging ahead,

regardless of the adequacy of one's powers,

can be justified only in the case of a warrior battling for his prince.

Nine in the fourth place means:

He treads on the tail of the tiger.

Caution and circumspection

Lead ultimately to good fortune.

This text refers to a dangerous enterprise.

The inner power to carry it through is there, but

this inner power is combined with hesitating caution in one's external attitude.

This line contrasts with the preceding line, which is

· weak within but

· outwardly presses forward.

Here one is sure of ultimate success,

which consists in achieving one's purpose,

that is, in overcoming danger by going forward.

0 Nine in the fifth place means:

Resolute conduct.

Perseverance with awareness of danger.

This refers to the ruler of the hexagram as a whole.

One sees that

· one has to be resolute in conduct. But at the same time

· one must remain conscious of the danger connected with such resoluteness,

especially if it is to be persevered in.

Only awareness of the danger makes success possible.

Nine at the top means:

· Look to your conduct and

· weigh the favorable signs.

When everything is fulfilled, supreme good fortune comes.

The work is ended.

· we want to know whether good fortune will follow,

· we must look back upon

o our conduct and

o its consequences.

· the effects are good,

· then good fortune is certain.

No one knows himself.

It is only

· by the consequences of his actions,

· by the fruit of his labors,

that a man can judge what he is to expect.

1i. [Auftreten, the German word used for the name of the hexagram, means both "treading" and "conduct."]

2,. [See explanation of this line in bk. III, PP- 437-38-]

10 - TREADING (CONDUCT)

MANAGERIAL ISSUE:

The CEO – managing the corporation under the proper conduct.

Hexagram 10 deals with two situations:

For the CEO, it means the proper behavior to follow for him as well as for the rest of the employees. This is especially the case when the employees are a very difficult group of people, such as the case of a software corporation where the employees are the highly intellectual type.

For the corporation itself, it means the risk of dangerously imitating a larger and stronger corporation within the industry, sometimes even leaning on it for technical support, as well as dangerously irritating a government.

For a corporation to survive there must be a hierarchical structure where everyone knows his place - where the CEO is CEO and the janitor is janitor. For the industry there must also be a hierarchy amongst the corporations. The larger one must show tolerance to the smaller ones and the smaller one must show respect for the larger one and especially refrain from copying the larger one’s products. In this case, however, it could be said that the large corporation would like the small one to survive and thus avoid charges of monopoly. That is the reason why the larger corporation is very forgiving with the smaller one even though the smaller one is probably copying many of its products.

And that is the reason why Microsoft invested $150 million in Apple in 1997 after Apple reported a disastrous $1 billion loss – to make sure Apple did not go bankrupt. Microsoft needed Apple alive to avoid becoming a complete software monopoly.

But this Time-Space is also a perfect example of the Time-Space of Citigroup after the 2008 crash (see below). It can afford to tread upon the stronger US Government because it knows it is too big to fail. No matter how many mistakes, no matter how much money it loses or throws away, the larger and stronger US government will not punish it.

The I Ching says: “The fact that the strong treads on the weak is not mentioned in the Book of Changes, because it is taken for granted. For the weak to take a stand against the strong is not dangerous here, because it happens in good humor [Tui] and without presumption, so that the strong man is not irritated but takes it all in good part”.

In general terms, however, this is a time for keeping a certain order, for the small corporation to look for its place and not to alienate the stronger one. This is much like a lions’ pride where everyone knows its place. So is the case in the industry where each corporation knows its place.

MANAGERIAL LESSON:

The Superior CEO:

1. Sets the example by behaving with dignity when dealing with difficult people.

· The I Ching says: “Pleasant manners succeed even with irritable people”.

2. Rewards the employees on a merit basis only. It is the only way to deal with difficult people.

The I Ching says: “Thus the superior man discriminates between high and low, and thereby fortifies the thinking of the people… Heaven and the Lake show a difference of elevation that inheres in the natures of the two, hence no envy arises. Among mankind also there are necessarily differences of elevation; it is impossible to bring about universal equality. But it is important that differences in social rank should not be arbitrary and unjust, for if this occurs, envy and class struggle are the inevitable consequences. If, on the other hand, external differences in rank correspond with differences in inner worth, and if inner worth forms the criterion of external rank, people acquiesce and order reigns in society.”

3. Studies well the lines before making any moves. If the lines point to God Fortune, the small corporation will get away with challenging the larger one. If not, the CEO must prepare for difficult conditions should he decide to begin an aggressive campaign with new products. If the line is not positive, this might be a situation of possible losses and it might not be worth the effort, even if at times his campaign promises to be successful right from the very beginning. The idea of a small corporation daring to take on and compete against a larger one, even if the large one shows tolerance towards it, is a risk which most CEOs should not assume without checking the final outcome. What is important are the lines. Rather than face destruction, it would be better to keep its good position within the industry, a position it was able to maintain due to both its low profile and the fact that it has managed to avoid a direct confrontation with the larger companies of the industry.

INVESTMENT ADVICE:

For the investor, The Treading Time–Space is favorable.

By itself (no lines), the Hexagram points to success because the strong takes the attacks of the small in a light manner and does not harm him:

TREADING.

Treading upon the tail of the tiger.

It does not bite the man.

Success.

The situation is really difficult. That which is strongest and that which is weakest are close together. The weak follows behind the strong and worries it. The strong, however, acquiesces and does not hurt the weak, because the contact is in good humor and harmless.

Four of the six lines are positive for investing (2, 4, 5, and 6) which make this hexagram mostly positive.

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

· Citigroup, Inc. C Under CEO Vikram S. Pandit

· Life Technologies Corporation LIFE under CEO Gregory T. Lucier

· Baidu, Inc. BIDU under CEO Yanhong Li

· Altera Corp. ALTR under CEO John P. Daane

THE LINES

NINE IN THE FIRST PLACE

Managerial Issue: The CEO – managing the corporation under the proper conduct – not challenging the stronger corporations, being content with simplicity.

Managerial Lesson: Be modest.

Managerial Warning: At the first stage of the Treading Time-Space, the CEO must realize that for the corporation as well as for himself, sometimes it is best to be modest and maintain a low profile.

Managerial Advice: There are two cases here:

1. For the corporation – this is a corporation with a good position (financial strength) within the industry due to both its low profile and the fact that it has managed to avoid a direct confrontation with the larger corporations within the industry. Nevertheless, in this case, the small corporation is about to begin an aggressive campaign with new products, which promise to be successful right from the very beginning.

If the move is only a marketing move with nothing new to offer, they will lose out. Especially if the move is made out of pride, just to move up from its low ranking position within the industry. The small corporation’s empty move would force the strongest corporation to counter attack and destroy the small one. The small corporation might win some battles, but in the end, it will lose the war because of its wild ambition.
If the move is made because the corporation really has something new to offer, it will earn the respect of the larger corporations and strengthen its position even though it might not make it to the number one spot.

2. For the CEO - he is about to use force on all the unruly employees in an attempt to control them. Nevertheless, his efforts are not correct but rather are born from his wild ambition. This is bound to fail.

Investment Advice: Do not invest.

NINE IN THE SECOND PLACE

Managerial Issue: The CEO – managing the corporation under the proper conduct – recognizing its own place in the industry.

Managerial Lesson: Be compliant.

Managerial Warning: At the second stage of the Treading Time-Space, the CEO must realize it is not wise to challenge the will of Heaven. He must not allow himself to be tempted to be or to do what is not his true mission.

Managerial Advice: The Superior CEO keeps the corporation true to its goals. He will neither be tempted to follow the latest fads nor to seek strange alliances. He knows when to maintain a no-aggressive attitude and make no plans to outgrow their much larger and stronger competitors. The proper attitude allows the corporation to live together with the other larger corporations and still be profitable.

Investment Advice: Invest

SIX IN THE THIRD PLACE

Managerial Issue: The CEO – managing the corporation under the proper conduct – breaking the code of conduct without the resources and unsure of the outcome.

Managerial Lesson: Be humble.

Managerial Warning: At the third stage of the Treading Time-Space, the CEO of the small corporation is about to launch an aggressive campaign to take the lead from the larger corporations in the industry.

Managerial Advice: The Superior CEO is humble. He realizes his weakness and averts the danger. He does not make the mistake of thinking his corporation has the withal (financial strength, products and the marketing know-how) to launch an aggressive marketing campaign. He recognizes when his corporation does not have the resources, when it would be overreaching, and when the net result will be a loss. The Superior CEO knows the key to success lies in recognizing the limitations and in not going beyond what the corporation’s strength allows.

Investment Advice: Do not invest.

NINE IN THE FOURTH PLACE

Managerial Issue: The CEO – managing the corporation under the proper conduct – breaking the code of conduct with the proper resources and sure of the outcome.

Managerial Lesson: Be determined.

Managerial Warning: At the fourth stage of the Treading Time-Space, the CEO of a small corporation is planning a campaign to take the lead from the stronger corporations. His plan is bold and is full of risks; however, this time the corporation has the financial and human resources required to succeed. Fate is on his side.

Managerial Advice: The Superior CEO knows when Heaven is on his side and therefore, when to go ahead with an aggressive marketing campaign. In this case, the small corporation will succeed because it has: the necessary resources to pull it off IN TIME, the right products at the right time, and the right attitude of proper persistence without being too aggressive. Heaven is on his side.

Investment Advice: Invest

NINE IN THE FIFTH PLACE

Managerial Issue: The CEO – managing the corporation under the proper conduct – with the vision to make his move.

Managerial Lesson: Be aware.

Managerial Warning: At the fifth stage of the Treading Time-Space, the CEO “sees that one has to be resolute in his conduct.”

Managerial Advice: The Superior CEO allows his vision (sees) to give him the necessary resolution to move. Yet, his wisdom will be tempered by his awareness of danger at all times. He knows that perseverance and consciousness of danger are keys to success.

This refers to the ruler of the hexagram as a whole.

· One sees that one has to be resolute in conduct.

But at the same time

· one must remain conscious of the danger connected with such resoluteness, especially if it is to be persevered in.

Only awareness of the danger makes success possible.

This is one of the lines of Ray Dalio: what am I doing wrong? What am I doing wrong?

Investment Advice: Invest.

NINE IN THE SIXTH PLACE

Managerial Issue: The CEO – managing the corporation under the proper conduct – weighing the favorable signs when everything is fulfilled.

Managerial Lesson: Be analytical.

Managerial Warning: At the sixth stage of the Treading Time-Space, the CEO of a small corporation has already carried out his break-out-of-the-pack strategy.

Managerial Advice: The Superior CEO is patient and analytical. He knows when to wait and analyze the results. There is no definite answer or outcome. But if the results of his strategy are becoming evidently positive then the final result will be extremely positive. Now is a time to wait to see the results.

Investment Advice: Invest.

MANAGERIAL CASES

Citigroup, Inc. C Under CEO Vikram S. Pandit

Vikram S. Pandit’s Performance: ROI= (87.36%) Annualized Return= (43.43%)

SPY’s Performance: ROI= (10.54%) Annualized Return= (3.02%)

Vikram S. Pandit has been CEO since December 11, 2007. Since 6/15/2009, his performance has been dismal. However, it would not be fair to compare his performance with that of the SPY, not after the mess Prince left him – although in all fairness, it was really the making of Sandy Weill, the perfect example of what not to do in management.

It is not easy to measure Pandit’s performance, but he is showing humility by getting rid of all the garbage Weill put together. The I Ching speaks well of the Pandit-Citi Time-Space since his line points to Good Fortune. However, the CEO and the investor should keep in mind that the word “ultimately” points to time and effort.

Points the investor should consider:

1) THE HEXAGRAM

HEXAGRAM 10 – Lu - Treading (Conduct)

The name of the hexagram means on the one hand the right way of conducting oneself. Heaven, the father, is above, and the lake, the youngest daughter, is below. This shows the difference between high and low, upon which composure, correct social conduct, depends. On the other hand, the word for the name of the hexagram, TREADING, 1 means literally treading upon something. The small and cheerful [Tui] treads upon the large and strong [Ch'ien]. The direction of movement of the two primary trigrams is upward. The fact that the strong treads on the weak is not mentioned in the Book of Changes, because it is taken for granted. For the weak to take a stand against the strong is not dangerous here, because it happens in good humor [Tui] and without presumption, so that the strong man is not irritated but takes it all in good part.

THE JUDGMENT

TREADING.

Treading upon the tail of the tiger.

It does not bite the man.

Success.

2) THE ADVICE

Heaven above, the lake below: The image Of TREADING.

Thus the superior man discriminates between high and low,

And thereby fortifies the thinking of the people.

Heaven and the lake show a difference of elevation that inheres in the natures of the two, hence no envy arises. Among mankind also there are necessarily differences of elevation; it is impossible to bring about universal equality. But it is important that differences in social rank should not be arbitrary and unjust, for if this occurs, envy and class struggle are the inevitable consequences. If, on the other hand, external differences in rank correspond with differences in inner worth, and if inner worth forms the criterion of external rank, people acquiesce and order reigns in society.

3) THE LINES:

Nine in the fourth place means:

He treads on the tail of the tiger.

Caution and circumspection

Lead ultimately to good fortune.

This text refers to a dangerous enterprise. The inner power to carry it through is there, but this inner power is combined with hesitating caution in one's external attitude. This line contrasts with the preceding line, which is weak within but outwardly presses forward. Here one is sure of ultimate success, which consists in achieving one's purpose, that is, in overcoming danger by going forward.

4) THE MOVING 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.

Life Technologies Corporation LIFE under CEO Gregory T. Lucier

Gregory T. Lucier’s Performance: ROI= 62.67% Annualized Return= 19.50%

SPY’s Performance: ROI= 39.84% Annualized Return= 13.06%

Gregory T. Lucier has been CEO since November 2008. Since then, his performance has been positive as per the Supreme Good Fortune announced in his line.

Points the investor should consider:

1) THE HEXAGRAM

(See Above)

2) THE ADVICE

(See Above)

3) THE LINES:

Nine in the fourth place means:

He treads on the tail of the tiger.

Caution and circumspection

Lead ultimately to good fortune.

0 Nine in the fifth place means:

Resolute conduct.

Perseverance with awareness of danger.

This refers to the ruler of the hexagram as a whole. One sees that one has to be resolute in conduct. But at the same time one must remain conscious of the danger connected with such resoluteness, especially if it is to be persevered in. Only awareness of the danger makes success possible.

Nine at the top means:

Look to your conduct and weigh the favorable signs.

When everything is fulfilled, supreme good fortune comes.

The work is ended. If we want to know whether good fortune will follow, we must look back upon our conduct and its consequences. If the effects are good, then good fortune is certain. No one knows himself. It is only by the consequences of his actions, by the fruit of his labors, that a man can judge what he is to expect.

4) THE MOVING HEXAGRAM

HEXAGRAM 19 – Lin - Approach

The Chinese word Lin has a range of meanings that is not exhausted by any single word of another language. The ancient explanations in the Book of Changes give as its first meaning, "becoming great." What becomes great are the two strong lines growing into the hexagram from below; the light-giving power expands with them. The meaning is then further extended to include the concept of approach, especially the approach of what is strong and highly placed in relation to what is lower. Finally the meaning includes the attitude of condescension of a man in high position toward the people, and in general the setting to work on affairs. This hexagram is linked with the twelfth month (January-February), when, after the winter solstice, the light power begins to ascend again.

THE JUDGMENT

APPROACH has supreme success.

Perseverance furthers.

When the eighth month comes,

There will be misfortune.

The hexagram as a whole points to a time of joyous, hopeful progress. Spring is approaching. Joy and forbearance bring high and low nearer together. Success is certain. But we must work with determination and perseverance to make full use of the propitiousness of the time. And one thing more: spring does not last forever. In the eighth month the aspects are reversed. Then only two strong, light lines are left; these do not advance but are in retreat (see next hexagram). We must take heed of this change in good time. If we meet evil before it becomes reality - before it has even begun to stir - we can master it.

THE IMAGE

The earth above the lake: The image of APPROACH.

Thus the superior man is inexhaustible

In his will to teach,

And without limits

In his tolerance and protection of the people.

The earth borders upon the lake from above 1. This symbolizes the approach and condescension of the man of higher position to those beneath him. The two parts of the image indicate what his attitude toward these people will be. Just as the lake is inexhaustible in depth, so the sage is inexhaustible in his readiness to teach mankind, and just as the earth is boundlessly wide, sustaining and caring for all creatures on it, so the sage sustains and cares for all people and excludes no part of humanity.

Baidu, Inc. BIDU under CEO Yanhong Li

Yanhong Li’s Performance: ROI= 1,971.09% Annualized Return= 66.92%

SPY’s Performance: ROI= 7.19% Annualized Return= 1.18%

Yanhong Li has been CEO since January 2004. Since August 2005, his performance has been spectacular.

Because he has been CEO for close to a decade, we asked the Oracle about his future Time-Space. It is Treading. What is interesting here is that he has been Treading on the tail of two tigers: Google and the Chinese government. Both have been very tolerant but in particular, the Chinese government has been not only tolerant but also very protective of Baidu. When the strong (Heaven) not only tolerates but protects the weak (Lake), Good Fortune is the ultimate outcome.

Points the investor should consider:

1) THE HEXAGRAM

(See Above)

2) THE ADVICE

(See Above)

3) THE LINES:

Nine at the beginning means:

Simple conduct.

Progress without blame.

The situation is one in which we are still not bound by any obligations of social intercourse. If our conduct is simple, we remain free of them. We can quietly follow our predilections as long as we are content and make no demands on people.

The meaning of the hexagram is not standstill but progress. A man finds himself in an altogether inferior position at the start. However, he has the inner strength that guarantees progress. If he can be content with simplicity, he can make progress without blame. When a man is dissatisfied with modest circumstances, he is restless and ambitious and tries to advance, not for the sake of accomplishing anything worthwhile, but merely in order to escape from lowliness and poverty by dint of his conduct. Once his purpose is achieved, he is certain to become arrogant and luxury-loving. Therefore blame attaches to his progress. On the other hand, a man who is good at his work is content to behave simply. He wishes to make progress in order to accomplish something. When he attains his goal, he does something worthwhile , and all is well.

Nine in the second place means:

Treading a smooth, level course.

The perseverance of a dark man(2)

Brings good fortune.

The situation of a lonely sage is indicated here. He remains withdrawn from the bustle of life, seeks nothing, asks nothing of anyone, and is not dazzled by enticing goals. He is true to himself and travels through life unassailed, on a level road. Since he is content and does not challenge fate, he remains free of entanglements.

Nine in the fourth place means:

He treads on the tail of the tiger.

Caution and circumspection

Lead ultimately to good fortune.

4) THE MOVING HEXAGRAM

HEXAGRAM 20 – Kuan - Contemplation (View)

A slight variation of tonal stress gives the Chinese name for this hexagram a double meaning. It means both contemplating and being seen, in the sense of being an example. These ideas are suggested by the fact that the hexagram can be understood as picturing a type of tower characteristic of ancient China.

A tower of this kind commanded a wide view of the country; at the same time, when situated on a mountain, it became a landmark that could be seen for miles around. Thus the hexagram shows a ruler who contemplates the law of heaven above him and the ways of the people below, and who, by means of good government, sets a lofty example to the masses.

This hexagram is linked with the eighth month (September - October). The light-giving power retreats and the dark power is again on the increase. However, this aspect is not material in the interpretation of the hexagram as a whole.

THE JUDGMENT

CONTEMPLATION.

The ablution has been made,

But not yet the offering.

Full of trust they look up to him.

The sacrificial ritual in China began with an ablution and a libation by which the Deity was invoked, after which the sacrifice was offered. The moment of time between these two ceremonies is the most sacred of all, the moment of deepest inner concentration. If piety is sincere and expressive of real faith, the contemplation of it has a transforming and awe-inspiring effect on those who witness it.

Thus also in nature a holy seriousness is to be seen in the fact that natural occurrences are uniformly subject to law. Contemplation of the divine meaning underlying the workings of the universe gives to the man who is called upon to influence others the means of producing like effects. This requires that power of inner concentration which religious contemplation develops in great men strong in faith. It enables them to apprehend the mysterious and divine laws of life, and by means of profoundest inner concentration they give expression to these laws in their own persons. Thus a hidden spiritual power emanates from them, influencing and dominating others without their being aware of how it happens.

THE IMAGE

The wind blows over the earth: The image of CONTEMPLATION.

Thus the kings of old visited the regions of the world,

Contemplated the people,

And gave them instruction.

When the wind blows over the earth it goes far and wide and the grass must bend to its power. These two occurrences find confirmation in the hexagram. The two images are used to symbolize a practice of the kings of old; in making regular journeys the ruler could, in the first place, survey his realm and make certain that none of the existing usages of the people escaped notice; in the second, he could exert influence through which such customs as were unsuitable could be changed.

All of this points to the power possessed by a superior personality. On the one hand, such a man will have a view of the real sentiments of the great mass of humanity and therefore cannot be deceived; on the other, he will impress the people so profoundly, by his mere existence and by the impact of his personality, that they will be swayed by him as the grass by the wind.

Altera Corp. ALTR under CEO John P. Daane

John P. Daane’s Performance: ROI= 72.18% Annualized Return= 5.19%

SPY’s Performance: ROI= (0.69%) Annualized Return= (0.06%)

John P. Daane has been CEO since November of 2000. Since then, his performance has been excellent.

Because he has been CEO for more than a decade, we asked the Oracle about his future performance. It is Treading and carries a warning: Only awareness of the danger makes success possible.

Points the investor should consider:

1) THE HEXAGRAM

(See Above)

2) THE ADVICE

(See Above)

3) THE LINES:

0 Six in the third place means:

A one-eyed man is able to see,

A lame man is able to tread.

He treads on the tail of the tiger.

The tiger bites the man.

Misfortune.

Thus does a warrior act on behalf of his great prince.

A one-eyed man can indeed see, but not enough for clear vision. A lame man can indeed tread, but not enough to make progress. If in spite of such defects a man considers himself strong and consequently exposes himself to danger, he is inviting disaster, for he is undertaking something beyond his strength . This reckless way of plunging ahead, regardless of the adequacy of one's powers, can be justified only in the case of a warrior battling for his prince.

0 Nine in the fifth place means:

Resolute conduct.

Perseverance with awareness of danger.

4) THE MOVING HEXAGRAM

HEXAGRAM 14 - Ta Yu - Possession in Great Measure

The fire in heaven above shines far, and all things stand out in the light and become, manifest. The weak fifth line occupies the place of honor, and all the strong lines are in accord with it.

All things come to the man who is modest and kind in a high position. 1

THE JUDGMENT

POSSESSION IN GREAT MEASURE.

Supreme success.

The two trigrams indicate that strength and clarity unite. Possession in great measure is determined by fate and accords with the time. How is it possible that the weak line has power to hold the strong lines fast and to possess them? It is done by virtue of unselfish modesty. The time is favorable - a time of strength within, clarity and culture without. Power is expressing itself in a graceful and controlled way. This brings supreme success and wealth. 2

THE IMAGE

Fire in heaven above: The image of POSSESSION IN GREAT MEASURE .

Thus the superior man curbs evil and furthers good,

And thereby obeys the benevolent will of heaven.

The sun in heaven above, shedding light over everything on earth, is the image of possession on a grand scale. But a possession of this sort must be administered properly. The sun brings both evil and good into the light of day. Man must combat and curb the evil, and must favor and promote the good. Only in this way does he fulfill the benevolent will of God, who desires only good and not evil.