HEXAGRAM 13: ORIGINAL, INTERPRETATION AND CASES

 

 

 

HEXAGRAMA 13 - T'ung Jen - Fellowship with Men

 

Above CH'IEN         THE CREATIVE, HEAVEN

Below LI               THE CLINGING, FLAME

 

The image

·        of the upper trigram Ch'ien is heaven, and that

·        of the lower, Li, is flame. 

It is the nature of fire to flame up to heaven. 

This gives the idea of fellowship. 

It is the second line that, by virtue of its central character,

unites the five strong lines around it. 

This hexagram forms a complement to Shih, THE ARMY (7). 

1.   In the latter, danger is within and obedience without –

the character of a warlike army, which, in order to hold together, needs

one strong man among the many who are weak. 

2.   Here, clarity is within and strength without –

the character of a peaceful union of men, which, in order to hold together, needs

one yielding nature among many firm persons.

 

THE JUDGMENT

 

FELLOWSHIP WITH MEN in the open.

Success.

It furthers one to cross the great water.

The perseverance of the superior man furthers.

 

True fellowship among men must be based upon a concern that is universal. 

It is

not the private interests of the individual that create lasting fellowship among men,

but rather the goals of humanity. 

That is why it is said that fellowship with men in the open succeeds. 

If unity of this kind prevails,

even difficult and dangerous tasks, such as crossing the great water,

can be accomplished. 

But in order to bring about this sort of fellowship,

a persevering and enlightened leader is needed –

a man with

·        clear, convincing, and inspiring aims and

·        the strength to carry them out.

 

·        (The inner trigram means clarity;

·        the outer, strength.)

 

THE IMAGE

 

Heaven together with fire: The image of FELLOWSHIP WITH MEN.

Thus the superior man

·        organizes the clans And

·        makes distinctions between things.

 

Heaven

·        has the same direction of movement as fire,

·        yet it is different from fire. 

Just as

·        the luminaries in the sky serve for the systematic division and arrangement of time,

so

·        human society and all things that really belong together must be organically arranged. 

Fellowship should not be a mere mingling, of individuals or of things –

that would be chaos, not fellowship. 

If fellowship is to lead to order, there must be organization within diversity.

 

THE LINES

 

Nine at the beginning means:

Fellowship with men at the gate.

No blame.

 

The beginning of union among people should take place before the door. 

All are equally close to one another. 

·        No divergent aims have yet arisen, and

·        one makes no mistakes. 

The basic principles of any kind of union must be equally accessible to all concerned. 

Secret agreements bring misfortune.

 

0 Six in the second place means:

Fellowship with men in the clan. 

Humiliation.

 

There is danger here of formation of a separate faction on the basis of

·        personal and

·        egotistic interests. 

Such factions, which are exclusive and,

instead of welcoming all men,

must condemn one group in order to unite the others,

·        originate from low motives and therefore

·        lead in the course of time to humiliation.

 

Nine in the third place means: 

·        He hides weapons in the thicket;

·        He climbs the high hill in front of it. 

For three years he does not rise up.

 

Here fellowship has changed about to mistrust. 

Each man

·        distrusts the other,

·        plans a secret ambush, and

·        seeks to spy on his fellow from afar. 

We are dealing with an obstinate opponent whom

we cannot come at by this method. 

Obstacles standing in the way of fellowship with others are shown here. 

One

·        has mental reservations for one's own part and

·        seeks to take his opponent by surprise. 

This very fact makes one mistrustful,

·        suspecting the same wiles in his opponent and

·        trying to ferret them out. 

The result is that one departs further and further from true fellowship. 

·        The longer this goes on,

·        the more alienated one becomes.

 

Nine in the fourth place means: 

·        He climbs up on his wall;

·        he cannot attack. 

Good fortune.

 

Here the reconciliation that follows quarrel moves nearer. 

It is true that there are still dividing walls on which we stand confronting one another. 

But the difficulties are too great. 

·        We get into straits, and this brings us to our senses. 

·        We cannot fight, and therein lies our good fortune.

 

0 Nine in the fifth place means:

Men bound in fellowship

·        first weep and lament,

·        But afterward they laugh.

After great struggles they succeed in meeting.

 

Two people are outwardly separated,

but in their hearts they are united. 

They are kept apart by their positions in life. 

Many difficulties and obstructions arise between them and cause them grief. 

But, remaining true to each other, they allow nothing to separate them, and

although it costs them a severe struggle to overcome the obstacles,

they will succeed. 

When they come together their sadness will change to joy. 

 

Confucius says of this:

Life leads the thoughtful man on a path of many windings. 

·        Now the course is checked,

·        now it runs straight again. 

·        Here winged thoughts may pour freely forth in words,

·        There the heavy burden of knowledge must be shut away in silence.

But

·        when two people are at one in their inmost hearts,

o   They shatter even the strength of iron or of bronze.

And

·        when two people understand each other in their inmost hearts,

o   Their words are sweet and strong, like the fragrance of orchids.

 

Nine at the top means:

Fellowship with men in the meadow. 

No remorse.

 

The warm attachment that springs from the heart is lacking here. 

We are by this time actually outside of fellowship with others. 

However, we ally ourselves with them. 

The fellowship

·        does not include all, but

·        only those who happen to dwell near one another. 

The meadow is the pasture at the entrance to the town. 

At this stage,

·        the ultimate goal of the union of mankind has not yet been attained,

·        but we need not reproach ourselves. 

We join the community without separate aims of our own.

 

 

 

 

 

 

13 FELLOWSHIP WITH MEN

 

 

 

MANAGERIAL ISSUE:

 

The CEO – managing the employees’ fellowship with each other, and the corporation’s fellowship with its subsidiaries/competitors.

 

Hexagram 13 describes a time of transition from an initial period of trust which gave way to friendship, partnership or merger amongst the managers, subsidiaries and corporations to a period of mistrust.  Only the unifying spirit of an enlightened CEO can make this period of fellowship with men come about.

 

 

 

MANAGERIAL LESSON:

 

 

With regards to the vision, the Superior CEO:

 

 

1)   Establishes a goal for the interest and benefit of mankind (this will create fellowship or unity amongst the employees/subsidiaries/corporations).

 

  1. The goal must have three qualities.  It must be:

 

  1. The CEO must possess the inner strength to make the goals come to completion.

 

 

With regards to the attitude, the Superior CEO:

 

1)   Creates the necessary environment for all employees/subsidiaries/corporations to come together.  Such environment must be one of cooperation or community among each other, especially when each one is so strong and aggressive.

 

2)   Is soft spoken and easy going – he is the easy going leader amongst so many strong ones.

 

3)   Seeks to unite opposing managers based on what they have in common rather than on what makes them different.

 

4)   Covers the general needs of the corporation rather than covering the needs of the managers.

 

 

 

With regards to the corporation, the Superior CEO:

 

1)   Restructures and organizes the corporation in such a way as to ensure there will be:

a.   Unity within and diversification without

b.   Cohesion and order,

 

2)   Delegates properly the responsibilities to the other stronger managers.

 

3)   Prepares and communicates a very coherent plan.

 

4)   Transmits enthusiasm to the rest of the management.

 

 

The I Ching says: “True fellowship among men must be based upon a concern that is universal.  It is not the private interests of the individual that create lasting fellowship among men, but rather the goals of humanity.  That is why it is said that fellowship with men in the open succeeds.  If unity of this kind prevails, even difficult and dangerous tasks, such as crossing the great water, can be accomplished.  But in order to bring about this sort of fellowship, a persevering and enlightened leader is needed a man with clear, convincing, and inspiring aims and the strength to carry them out” …“Fellowship should not be a mere mingling, of individuals or of things - that would be chaos, not fellowship.  If fellowship is to lead to order, there must be organization within diversity.”

 

 

 

INVESTMENT ADVICE:

 

This is the Hexagram of AT&T and NCR.  AT&T’s CEO Robert Allen had failed miserably in his attempts to venture into the computer industry.  In 1991, he mounted a hostile takeover of NCR for $ 7 billion.  His idea was to merge a global telecommunication company with a computer company.

 

The I Ching said about that merger:

 

·        True fellowship among men must be based upon a concern that is universal. 

 

NCR had nothing in common with AT&T and therefore no concern that was universal.

 

·        But in order to bring about this sort of fellowship, a persevering and enlightened leader is needed - a man with clear, convincing, and inspiring aims and the strength to carry them out.

 

Robert Allen was not an enlightened leader and had none of the requisites the I Ching demands from an enlightened leader.

 

·        Just as the luminaries in the sky serve for the systematic division and arrangement of time, so human society and all things that really belong together must be organically arranged. 

 

These two companies did not really belong together and could not be organically arranged.

 

·        Fellowship should not be a mere mingling, of individuals or of things - that would be chaos, not fellowship. 

 

Robert Allen was mingling.  He was not creating fellowship.  This is evidenced by the following lines of the Time-Space created at the AT&T-NCR union.

 

0 Six in the second place means:

Fellowship with men in the clan. 

Humiliation.

There is danger here of formation of a separate faction on the basis of personal and egotistic interests.  Such factions, which are exclusive and, instead of welcoming all men, must condemn one group in order to unite the others, originate from low motives and therefore lead in the course of time to humiliation.

 

The I Ching warned the CEO these two corporations would never merge.  They would always be separate because they had separate cultures.  The CEO of AT&T would be forced to choose between the two when it came to offering support.  There was no doubt he would always choose AT&T in any dispute with any subsidiary.  Thus NCR employees felt as second citizens.  The Oracle also warned the CEO in the end he would be humiliated.

 

 

Nine in the third place means: 

He hides weapons in the thicket;

He climbs the high hill in front of it. 

For three years he does not rise up.

 

Here fellowship has changed about to mistrust.  Each man distrusts the other, plans a secret ambush, and seeks to spy on his fellow from afar.  We are dealing with an obstinate opponent whom we cannot come at by this method.  Obstacles standing in the way of fellowship with others are shown here.  One has mental reservations for one's own part and seeks to take his opponent by surprise.  This very fact makes one mistrustful, suspecting the same wiles in his opponent and trying to ferret them out.  The result is that one departs further and further from true fellowship.  The longer this goes on, the more alienated one becomes.

 

NCR’s employees hated the AT&T’s employees and in particular it’s CEO.  Mental reservations always kept the two groups apart.

 

The I Ching, as always, was right.  AT&T’s hostile takeover of NCR ended up in a tremendous failure costing the shareholders of AT&T dearly.  Almost five years later, in 1996, AT&T was forced to sell NCR for $1 billion after having paid originally $7 billion in 1991. 

 

Had Robert Allen made a simple consultation of the I Ching, he would have saved the shareholders of AT&T $6 billion and himself the humiliation the I Ching had warned him about in 1991.

 

This no doubt was the case of the employees of Citibank hating the aggressive nature of the employees of Smith Barney.  And this no doubt is the case of the employees of UBS hating the guts of the employees of Paine Webber. 

 

Let us repeat the mantra for those CEOs who are about to attempt taking over another corporation:

The I Ching says:

 

·        True fellowship among men must be based upon a concern that is universal. 

·        But in order to bring about this sort of fellowship, a persevering and enlightened leader is needed - a man with clear, convincing, and inspiring aims and the strength to carry them out.

·        Just as the luminaries in the sky serve for the systematic division and arrangement of time, so human society and all things that really belong together must be organically arranged. 

·        Fellowship should not be a mere mingling, of individuals or of things - that would be chaos, not fellowship. 

 

 

For the investor, the Fellowship with Men tends to be a positive Time-Space to invest.

 

By itself (no lines), the Hexagram points to success provided the CEO bases the fellowship on things that are common to all men or of a universal nature.

 

FELLOWSHIP WITH MEN in the open.

Success.

It furthers one to cross the great water.

The perseverance of the superior man furthers.

 

True fellowship among men must be based upon a concern that is universal.  It is not the private interests of the individual that create lasting fellowship among men, but rather the goals of humanity.  That is why it is said. that fellowship with men in the open succeeds.  If unity of this kind prevails, even difficult and dangerous tasks, such as crossing the great water, can be accomplished.  But in order to bring about this sort of fellowship, a persevering and enlightened leader is needed - a man with clear, convincing, and inspiring aims and the strength to carry them out. (The inner trigram means clarity; the outer, strength.)

 

 

The lines are relatively positive (with one pointing to Good Fortune in the 4th place.) which makes this hexagram mostly positive.

 

The following examples are those of corporations under the Fellowship of Men Time-Space

 

·        Ctrip.com International Ltd. CTRP under CEO Min Fan

·        Warner Chilcott plc WCRX under CEO Roger Boissonneault

·        Lam Research Corporation LRCX under CEO Stephen Newberry

 

 

 

THE LINES:

 

 

 

NINE IN THE FIRST PLACE

 

Managerial Issue:         The CEO – managing the fellowship with men - his first efforts to bring together the opposing parties (employees/subsidiaries/corporations).

 

Managerial Lesson: Be open. 

 

Managerial Warning: At the first stage of the Fellowship with Men Time-Space, the CEO must recognize his corporation is about to enter a tumultuous period.  Perhaps the employees/subsidiaries/corporations do not feel they are treated equally and they will begin to go their separate ways looking for individual goals and eventually conspire against each other.  Such lack of harmony might be caused by a failure to disclose any secret understandings between the employees/subsidiaries/corporations.

 

Managerial Advice: The Superior CEO makes sure every employee/subsidiary/corporation feels has easy access to his leader.  He is always open about any agreements.  He leaves hidden nothing that might create mistrust, particularly in the beginning of this Time-Space.  Unfortunately, even though in the beginning the employees/subsidiaries/corporations experience a period of harmony, this might not last. 

 

Investment Advice: Do not invest.

 

 

 

SIX IN THE SECOND PLACE

 

Managerial Issue:         The CEO – managing the fellowship with men – failing at it.

 

Managerial Lesson: Be unselfish. 

 

Managerial Warning: At the second stage of the Fellowship with Men Time-Space, the CEO as well as the managers are selfish and end up creating internal dissension and separatism amongst the employees/subsidiaries/corporations.  Both the CEO and the managers are interested in their personal furthering rather than in the general good of the corporation.  Their selfishness makes them unable to be impartial – making them choose one side and discriminate against another.  This will only end in the CEO’s as well as the managers’ failure and a serious damage to the corporation.  Based on their selfishness and lack of high ideals, they should consider failure as inevitable. 

 

Managerial Advice: The Superior CEO unites others based on high ideals. 

 

Investment Advice: Do not invest. 

 

 

 

NINE IN THIRD PLACE

 

Managerial Issue:         The CEO – managing the fellowship with men – dealing with the managers’ right out hostility for each other.

 

Managerial Lesson: Be trustful. 

 

Managerial Warning: At the third stage of the Fellowship with Men Time-Space, the CEO:

·        Will face a period of transition from a feeling of trust to a strong feeling of mistrust among the employees/subsidiaries/corporations.  All groups are dedicated to spying, creating mistrust and trying to isolate the enemy’s camp.  Some have already split between warring groups to gain power and control over each other rather than trying to reach together one common goal.  Furthermore, one of these groups has already prepared a trap on what it considers its enemy. However, this will not succeed because its “enemy” is stronger and practically immune to this type of tactics.  Such strength will force the group to retreat until a better opportunity arises to take its enemy by surprise.   

·        Must prepare for the worst moment in relations amongst his managers.  This is the end of fellowship.  This is inevitable and will put the CEO’s patience to the test. 

 

Managerial Advice: The Superior CEO knows mistrust breeds mistrust.  Under such Time-Space conditions, he can only show others the proper conduct.  Be trustful.

 

Investment Advice: Do not invest. 

 

 

 

NINE IN THE FOURTH PLACE

 

Managerial Issue:         The CEO – managing the fellowship with men – bringing warring groups together.

 

Managerial Lesson: Be conciliatory. 

 

Managerial Warning: At the fourth stage of the Fellowship with Men Time-Space, the CEO faces another period of transition but this time around is the opposite - from a feeling of mistrust to a feeling of trust among the employees/subsidiaries/corporations.  The various camps that were created because of the feelings of mistrust are about to join forces again; however, not because they are thinking of the ultimate good of the shareholders, but rather because of two reasons:

o   Both camps have measured each other up and have realized that it is impossible to destroy each other, and

o   Both camps are facing external enemies with much greater forces than theirs. 

 

This lack of disunion creates a certain degree of prosperity, but lack of disunion is not the same as union and no reason to invest. 

 

Managerial Advice: The Superior CEO is conciliatory.  His main goal is to make the warring managers realize their destruction is inevitable if they continue with their scheming. 

 

Investment Advice: Invest.

 

 

 

NINE IN THE FIFTH PLACE

 

Managerial Issue: The CEO – managing the fellowship with men – helping two friendly groups in their merger attempts.

 

Managerial Lesson: Be supportive. 

 

Managerial Warning; At the fifth stage of the Fellowship with Men Time-Space, the CEO faces a situation where there are two employees/subsidiaries/corporations groups among the various camps which coincide with each other’s goals.  However, they have not come together because they hold different ranks within the employees/subsidiaries/corporations.  In spite of the hostile climate created by all these camps, these two employees/subsidiaries/corporations have been in mutual agreement with each other for a while. 

 

Managerial Advice: The Superior CEO supports all attempts to reconcile and in particular promote the merger of these two employees/subsidiaries/corporations even though this reconciliation will be difficult and take time.  He knows that as long as both interested parties remain true to their common vision, they will be successful in joining together in common fellowship.

 

Confucius says of this:

·        Life

·        leads the thoughtful man on a path of many windings. 

 

Now

·         the course

·        is checked,

now

·         it

·        runs straight again. 

 

Here

·        winged thoughts

·        may pour freely forth in words,

there

·        the heavy burden of knowledge

·        must be shut away in silence.

 

But when

·        two people

·        are at one in their inmost hearts,

·        they

·        shatter even the strength of iron or of bronze.

 

And when

·        two people

·        understand each other in their inmost hearts,

·        their words

·        are sweet and strong, like the fragrance of orchids.

 

Investment Advice: Invest.

 

 

 

 

 

NINE IN THE SIXTH PLACE

 

Managerial Issue:         The CEO – managing the fellowship with men – failing to get the warring employees/subsidiaries/corporations to cooperate, but leaving the door open for a future encounter.

 

Managerial Lesson: Be longsuffering. 

 

Managerial Warning: At the sixth stage of the Fellowship with Men Time-Space, the CEO must accept there is no understanding between the employees/subsidiaries/corporations, neither in mind nor in spirit.  Nevertheless, some type of union or partnership will be set up but only with that part which has more affinity for each other and leaving out other parts.  This divisive attitude is not positive for the corporation.  The best managers are about to leave the corporation or industry, and even though there is no major immediate loss for the corporation, this condition can not last.

 

Managerial Advice: The Superior CEO will enable this fellowship between the employees/subsidiaries/corporations even though their final goals will not be reached. 

 

Investment Advice: Do not invest.

 

 

 

 

MANAGERIAL CASES

 

 

 

Ctrip.com International Ltd. CTRP under CEO Min Fan

 

 

Min Fan’s Performance:             ROI= 467.38%         Annualized Return=         36.55%

SPY’s Performance:                            ROI=     0.29%         Annualized Return=            0.09%        

 

Min Fan has been CEO since January 2006.  Since then, his performance has been substantially better than that of the SPY’s.  His performance is supported by the fourth line. 

 

 

Points the investor should consider:

 

 

1)  THE HEXAGRAM

 

HEXAGRAMA 13 - T'ung Jen - Fellowship with Men

 

The image of the upper trigram Ch'ien is heaven, and that of the lower, Li, is flame.  It is the nature of fire to flame up to heaven.  This gives the idea of fellowship.  It is the second line that, by virtue of its central character, unites the five strong lines around it.  This hexagram forms a complement to Shih, THE ARMY (7).  In the latter, danger is within and obedience without - the character of a warlike army, which, in order to hold together, needs one strong man among the many who are weak.  Here, clarity is within and strength without - the character of a peaceful union of men, which, in order to hold together, needs one yielding nature among many firm persons.

 

 

THE JUDGMENT

 

FELLOWSHIP WITH MEN in the open.

Success.

It furthers one to cross the great water.

The perseverance of the superior man furthers.

 

True fellowship among men must be based upon a concern that is universal.  It is not the private interests of the individual that create lasting fellowship among men, but rather the goals of humanity.  That is why it is said that fellowship with men in the open succeeds.  If unity of this kind prevails, even difficult and dangerous tasks, such as crossing the great water, can be accomplished.  But in order to bring about this sort of fellowship, a persevering and enlightened leader is needed - a man with clear, convincing, and inspiring aims and the strength to carry them out. (The inner trigram means clarity; the outer, strength.)

 

 

 

2)  THE ADVICE

 

Heaven together with fire: The image of FELLOWSHIP WITH MEN.

Thus the superior man organizes the clans

And makes distinctions between things.

 

Heaven has the same direction of movement as fire, yet it is different from fire.  Just as the luminaries in the sky serve for the systematic division and arrangement of time, so human society and all things that really belong together must be organically arranged.  Fellowship should not be a mere mingling, of individuals or of things - that would be chaos, not fellowship.  If fellowship is to lead to order, there must be organization within diversity.

 

 

 

3)  THE LINES:

 

Nine in the fourth place means: 

He climbs up on his wall; he cannot attack. 

Good fortune.

 

Here the reconciliation that follows quarrel moves nearer.  It is true that there are still dividing walls on which we stand confronting one another.  But the difficulties are too great.  We get into straits, and this brings us to our senses.  We cannot fight, and therein lies our good fortune.

 

 

 

4)  THE MOVING HEXAGRAM

 

HEXAGRAM 37 - Chia Jen - The Family (The Clan)

This hexagram represents the laws obtaining within the family.  The strong line at the top represents the father, the lowest the son.  The strong, line in the fifth place represents the husband, the yielding second line the wife.  On the other hand, the two strong lines in the fifth and the third place represent two brothers, and the two weak lines correlated with them in the fourth and the second place stand for their respective wives.  Thus all the connections and relationships within the family find their appropriate expression.  Each individual line has the character according with its place.  The fact that a strong line occupies the sixth place -where a weak line might be expected - indicates very clearly the strong leadership that must come from the head of the family.  The line is to be considered here not in its quality as the sixth but in its quality as the top line.  THE FAMILY shows the laws operative within the household that, transferred to outside life, keep the state and the world in order.  The influence that goes out from within the family is represented by the symbol of the wind created by fire.

 

 

THE JUDGMENT

 

THE FAMILY

The perseverance of the woman furthers.

 

The foundation of the family is the relationship between husband and wife.  The tie that holds the family together lies in the loyalty and perseverance of the wife.  Her place is within (second line), while that of the husband is without (fifth line).  It is in accord with the great laws of nature that husband and wife take their proper places.  Within the family a strong authority is needed; this is represented by the parents.  If the father is really a father and the son a son, if the elder brother fulfills his position, and the younger fulfills his, if the husband is really a husband and the wife a wife, then the family is in order.  When the family is in order, all the social relationships of mankind will be in order.

 

Three of the five social relationships are to be found within the family - that between father and son, which is the relation of love, that between husband and wife, which is the relation of chaste conduct, and that between elder and younger brother, which is the relation of correctness.  The loving reverence of the son is then carried over to the prince in the form of faithfulness to duty; the affection and correctness of behavior existing between the two brothers are extended to a friend in the form of loyalty, and to a person of superior rank in the form of deference.  The family is society in embryo; it is the native soil on which performance of moral duty is made easy through natural affection, so that within a small circle a basis of moral practice is created, and this is later widened to include human relationships in general.

 

 

THE IMAGE

 

Wind comes forth from fire: The image Of THE FAMILY.

Thus the superior man has substance in his words

And duration in his way of life.

 

Heat creates energy: this is signified by the wind stirred up by the fire and issuing forth from it.  This represents influence working from within outward.  The same thing is needed in the regulation of the family.  Here too the influence on others must proceed from one's own person.  In order to be capable of producing such an influence, one's words must have power, and this they can have only if they are based on something real, just as flame depends on its fuel.  Words have influence only when they are pertinent and clearly related to definite circumstances.  General discourses and admonitions have no effect whatsoever.  Furthermore, the words must be supported by one's entire conduct, just as the wind is made effective by its duration.  Only firm and consistent conduct will make such an impression on others that they can adapt and conform to it.  If words and conduct are not in accord and not consistent, they will have no effect.

 

 

 

 

Warner Chilcott plc WCRX under CEO Roger Boissonneault

 

 

Roger Boissonneault’s Performance:    ROI=         54.45%       Annualized Return=         9.54%

SPY’s Performance:                                     ROI= (6.22%)     Annualized Return=         (1.34%)     

 

Roger Boissonneault has been CEO since January 2005.  Since then, his performance has been much better compared to the SPY in spite of the negative line in the third place.  We will continue to monitor his performance and see how well he manages a condition where fellowship has changed about to mistrust.

 

 

 

Points the investor should consider:

 

 

 

1)  THE HEXAGRAM

 

(Same as Above)

 

 

2)  THE ADVICE

 

(Same as Above)

 

 

3)  THE LINES:

 

Nine in the third place means: 

He hides weapons in the thicket;

He climbs the high hill in front of it. 

For three years he does not rise up.

 

Here fellowship has changed about to mistrust.  Each man distrusts the other, plans a secret ambush, and seeks to spy on his fellow from afar.  We are dealing with an obstinate opponent whom we cannot come at by this method.  Obstacles standing in the way of fellowship with others are shown here.  One has mental reservations for one's own part and seeks to take his opponent by surprise.  This very fact makes one mistrustful, suspecting the same wiles in his opponent and trying to ferret them out.  The result is that one departs further and further from true fellowship.  The longer this goes on, the more alienated one becomes.

 

 

4)  THE MOVING HEXAGRAM

 

HEXAGRAM 25 - Wu Wang - Innocence (The Unexpected)

 

Ch'ien, heaven, is above; Chen, movement, is below.  The lower trigram Chen is under the influence of the strong line it has received from above, from heaven.  When, in accord with this, movement follows the law of heaven, man is innocent and without guile.  His mind is natural and true, unshadowed by reflection or ulterior designs.  For wherever conscious purpose is to be seen, there the truth and innocence of nature have been lost.  Nature that is not directed by the spirit is not true but degenerate nature.  Starting out with the idea of the natural, the train of thought in part goes somewhat further and thus the hexagram includes also the idea of the unintentional or unexpected.

 

 

THE JUDGMENT

 

INNOCENCE.  Supreme success.

Perseverance furthers.

If someone is not as he should be,

He has misfortune,

And it does not further him

To undertake anything.

 

Man has received from heaven a nature innately good, to guide him in all his movements.  By devotion to this divine spirit within himself, he attains an unsullied innocence that leads him to do right with instinctive sureness and without any ulterior thought of reward and personal advantage.  This instinctive certainty brings about supreme success and "furthers through perseverance." However, not everything instinctive is nature in this higher sense of the word, but only that which is right and in accord with the will of heaven.  Without this quality of rightness, an unreflecting, instinctive way of acting brings only misfortune. 

 

Confucius says about this:

"He who departs from innocence, what does he come to?  Heaven's will and blessing do not go with his deeds."

 

 

THE IMAGE

 

Under heaven thunder rolls: All things attain the natural state of innocence.

Thus the kings of old, rich in virtue, and in harmony with the time,

Fostered and nourished all beings.

 

In springtime when thunder, life energy, begins to move again under the heavens, everything sprouts and grows, and all beings receive from the creative activity of nature the childlike innocence of their original state.  So it is with the good rulers of mankind: drawing on the spiritual wealth at their command, they take care of all forms of life and all forms of culture and do everything to further them, and at the proper time.

Lam Research Corporation LRCX under CEO Stephen Newberry

 

 

Stephen Newberry’s Performance:      ROI=         41.21%       Annualized Return=         5.75%

SPY’s Performance:                            ROI=   8.52%         Annualized Return=         1.33%        

 

 

Stephen Newberry has been CEO since June 2005.  Since then, his performance has been much better compared to the SPY in spite of the negative line in the third place.  We will continue to monitor his performance and see how well he manages a condition where fellowship has changed about to mistrust.

 

 

 

Points the investor should consider:

 

 

1)  THE HEXAGRAM

 

(Same as Above).

 

 

2)  THE ADVICE

 

(Same as Above).

 

 

3)  THE LINES:

 

Nine in the third place means: 

He hides weapons in the thicket;

He climbs the high hill in front of it. 

For three years he does not rise up.

 

Here fellowship has changed about to mistrust.  Each man distrusts the other, plans a secret ambush, and seeks to spy on his fellow from afar.  We are dealing with an obstinate opponent whom we cannot come at by this method.  Obstacles standing in the way of fellowship with others are shown here.  One has mental reservations for one's own part and seeks to take his opponent by surprise.  This very fact makes one mistrustful, suspecting the same wiles in his opponent and trying to ferret them out.  The result is that one departs further and further from true fellowship.  The longer this goes on, the more alienated one becomes.

 

 

4)  THE MOVING HEXAGRAM

 

HEXAGRAM 25 - Wu Wang - Innocence (The Unexpected)

 

Ch'ien, heaven, is above; Chen, movement, is below.  The lower trigram Chen is under the influence of the strong line it has received from above, from heaven.  When, in accord with this, movement follows the law of heaven, man is innocent and without guile.  His mind is natural and true, unshadowed by reflection or ulterior designs.  For wherever conscious purpose is to be seen, there the truth and innocence of nature have been lost.  Nature that is not directed by the spirit is not true but degenerate nature.  Starting out with the idea of the natural, the train of thought in part goes somewhat further and thus the hexagram includes also the idea of the unintentional or unexpected.

 

 

THE JUDGMENT

 

INNOCENCE.  Supreme success.

Perseverance furthers.

If someone is not as he should be,

He has misfortune,

And it does not further him

To undertake anything.

 

Man has received from heaven a nature innately good, to guide him in all his movements.  By devotion to this divine spirit within himself, he attains an unsullied innocence that leads him to do right with instinctive sureness and without any ulterior thought of reward and personal advantage.  This instinctive certainty brings about supreme success and "furthers through perseverance." However, not everything instinctive is nature in this higher sense of the word, but only that which is right and in accord with the will of heaven.  Without this quality of rightness, an unreflecting, instinctive way of acting brings only misfortune. 

 

Confucius says about this:

"He who departs from innocence, what does he come to?  Heaven's will and blessing do not go with his deeds."

 

 

THE IMAGE

 

Under heaven thunder rolls: All things attain the natural state of innocence.

Thus the kings of old, rich in virtue, and in harmony with the time,

Fostered and nourished all beings.

 

In springtime when thunder, life energy, begins to move again under the heavens, everything sprouts and grows, and all beings receive from the creative activity of nature the childlike innocence of their original state.  So it is with the good rulers of mankind: drawing on the spiritual wealth at their command, they take care of all forms of life and all forms of culture and do everything to further them, and at the proper time.