HEXAGRAM 15: ORIGINAL, INTERPRETATION AND CASES

HEXAGRAM 15 - Ch’ien - Modesty

Above K´UN THE RECEPTIVE, EARTH

Below KEN KEEPING STILL, MOUNTAIN

This hexagram is made up of the trigrams

· Ken, Keeping Still, mountain, and

· K'un.

The mountain is the youngest son of the Creative, the representative of heaven on earth.

· dispenses the blessings of heaven, the clouds and rain that gather round its summit, and thereafter

· shines forth radiant with heavenly light.

This shows

· what modesty is and

· how it functions in great and strong men.

K'un, the earth, stands above.

Lowliness is a quality of the earth:

this is the very reason why it appears in this hexagram as exalted,

by being placed above the mountain.

This shows how modesty functions in lowly, simple people: they are lifted up by it.

THE JUDGEMENT

MODESTY creates success.

The superior man carries things through.

It is the law of heaven

· to make fullness empty and

· to make full what is modest;

· when the sun is at its zenith,

o it must, according to the law of heaven, turn toward its setting, and

· at its nadir

o it rises toward a new dawn.

In obedience to the same law,

the moon

· when it is full begins to wane, and

· when empty of light it waxes again.

This heavenly law works itself out in the fates of men also.

It is the law of earth

· to alter the full and

· to contribute to the modest.

· High mountains are worn down by the waters, and

· the valleys are filled up.

It is the law of fate

· to undermine what is full and

· to prosper the modest.

And men also

· hate fullness and

· love the modest.

The destinies of men are subject to immutable laws that must fulfill themselves.

But

man has it in his power to shape his fate,

according as his behavior exposes him to the influence of benevolent or of destructive forces.

When

· a man holds a high position and is nevertheless modest,

· he shines with the light of wisdom;

· he is in a lowly position and is modest,

· he cannot be passed by.

Thus the superior man

· can carry out his work to the end

· without boasting of what he has achieved.

THE IMAGE

Within the earth, a mountain: The image Of MODESTY.

Thus the superior man

· reduces that which is too much, And

· augments that which is too little.

· weighs things and

· makes them equal.

The wealth of the earth in which a mountain is hidden is not visible to the eye,

because the depths are offset by the height of the mountain.

Thus

high and low complement each other, and

the result is the plain.

Here an effect that it took a long time to achieve,

but that in the end seems easy of accomplishment and self-evident,

is used as the image of modesty.

The superior man does the same thing when he establishes order in the world;

· equalizes the extremes that are the source of social discontent and thereby

· creates just and equable conditions. 1

THE LINES

Six at the beginning means:

A superior man modest about his modesty

May cross the great water.

Good fortune.

1. A dangerous enterprise,

such as the crossing of a great stream,

is made much more difficult

if many claims and considerations have to be taken into account.

On the other hand,

2. the task is easy

if it is attended to quickly and simply.

Therefore

the unassuming attitude of mind that goes with modesty

fits a man to accomplish even difficult undertakings:

· imposes no demands or stipulations but

· settles matters easily and quickly.

Where

· no claims are put forward,

· no resistances arise.

Six in the second place means:

Modesty that comes to expression.

Perseverance brings good fortune.

"Out of the fullness of the heart the mouth speaketh."

When a man's attitude of mind is so modest

that this expresses itself in his outward behavior,

it is a source of good fortune to him.

For the possibility of exerting a lasting influence arises of itself, and

no one can interfere.

0 Nine in the third place means:

A superior man of modesty and merit

Carries things to conclusion.

Good fortune.

This is the center of the hexagram,

where its secret is disclosed.

A distinguished name is readily earned by great achievements,

1If

a man allows himself to be dazzled by fame,

· will soon be criticized, and

· difficulties will arise.

2If, on the contrary,

he remains modest despite his merit,

· makes himself beloved and

· wins the support necessary for carrying his work through to the end.

Six in the fourth place means:

Nothing that would not further modesty

In movement.

Everything has its proper measure.

Even modesty in behavior can be carried too far.

Here, however,

it is appropriate,

because the place between

a worthy helper below and a kindly ruler above

carries great responsibility.

· The confidence of the man in superior place must not be abused nor

· the merits of the man in inferior place concealed.

There are officials who indeed do not strive for prominence;

they

· hide behind the letter of the ordinances,

· decline all responsibility,

· accept pay without giving its equivalent in work, and

· bear empty titles.

This is the opposite of what is meant here by modesty.

In such a position,

modesty is shown by interest in one's work.

Six in the fifth place means:

No boasting of wealth before one's neighbor.

It is favorable to attack with force.

Nothing that would not further.

Modesty is not to be confused with weak good nature

that lets things take their own course.

When

· a man holds a responsible position,

· he must at times resort to energetic measures.

In doing so he

· must not try to make an impression by boasting of his superiority but

· must make certain of the people around him.

The measures taken

· should be purely objective and

· in no way personally offensive.

Thus modesty manifests itself even in severity.

Six at the top means:

Modesty that comes to expression.

It is favorable to set armies marching

To chastise one's own city and one's country.

A person who is really sincere in his modesty must make it show in reality.

He must proceed with great energy in this.

When enmity arises nothing is easier than to lay the blame on another.

· weak man takes offense perhaps, and draws back, feeling self-pity;

· he thinks that it is modesty that keeps him from defending himself.

Genuine modesty sets one to creating order and inspires one to begin by disciplining one's own ego and one's immediate circle.

Only through

· having the courage to marshal one's armies against oneself,

· will something forceful really be achieved. 2

1. This hexagram offers a number of parallels to the teachings of the Old and the New Testament, e.g., "And whosoever shall exalt himself shall be abased; and he that shall humble himself shall be exalted" [Matt. 23:1!21]; "Every valley shall be exalted, and every mountain and hill shall be made low: and the crooked shall be made straight, and the rough places plain" [Isa. 40 : 41] "God resisteth the proud, but giveth grace unto the humble" [Jas. 4: 6]. The concept of the Last Judgment in the Parsee religion shows similar features. The Greek notion of the jealousy of the gods might be mentioned in connection with the third of the biblical passages here cited.

2. There are not many hexagrams in the Book of Changes in which all the lines have an exclusively favorable meaning, as in the hexagram of modesty. This shows how great a value Chinese wisdom places on this virtue.

15 MODESTY

MANAGERIAL ISSUE:

The CEO – managing with modesty or humility - The key to success.

Hexagram 15 focuses on humility as the key to success. The CEO acquires humility by accepting and obeying the Will of Heaven rather than his own. By realizing that everything in the Universe is cyclical, always moving from a Yin to a Yang cycle. That when one is living during the 7 fat cows period is when one must not gloat but rather be modest and accept the fact that eventually one will be living under the 7 thin cows period. That when one is experiencing the boom, one must prepare for the crash. Modesty demands that when living in Yang, one must prepare for Yin.

Empires, countries, institutions, corporations and individuals all go through Yin to Yang cycles from birth to death. Some examples are Pen Central, Pan Am and IBM. These corporations have gone or have already completed many cycles and have finally disappeared or are going through their cycles.

· The I Ching says: “when the sun is at its zenith, it must, according to the law of heaven, turn toward its setting and at its nadir it rises toward a new dawn. In obedience to the same law, the moon when it is full begins to wane, and when empty of light it waxes again. This heavenly law works itself out in the fates of men also”.

As an extension of this law, the tendency of the Universe is to look for balance or equilibrium. That is, to take away from those who have much and give it to those who have little, as well as to bring down those who are on top and raise those who are at the bottom. This is especially true when those who have little and those who are at the bottom, are humble of heart.

· The I Ching says: “It is the law of earth to alter the full and to contribute to the modest. High mountains are worn down by the waters, and the valleys are filled up. It is the law of fate to undermine what is full and to prosper the modest. And men also hate fullness and love the modest.”

All tax systems follow this law by taking from him who has much and giving to him who has little. Perhaps one of the ways to avoid the inevitability of this law and or at least to mitigate its effects is to donate voluntarily part of our earnings, thus giving away before it is taken away. Bill Gates and Warren Buffett are following this law. They are returning to society their massive wealth by donating it to foundations dedicated to the well-being of humanity.

Richard Wilhelm says: “This hexagram offers a number of parallels to the teachings of the Old and the New Testament, e.g., "And whosoever shall exalt himself shall be abased; and he that shall humble himself shall be exalted" [Matt. 23:1!21; "Every valley shall be exalted, and every mountain and hill shall be made low: and the crooked shall be made straight, and the rough places plain" [Isa. 40 : 41; "God resisteth the proud, but giveth grace unto the humble" [Jas. 4: 6].”

MANAGERIAL LESSON:

The Superior CEO:

1. Remains modest when successful so that the corporation’s competitors may never experience hatred but rather respect and admiration for it.

2. Realizes his success is a result of Heaven’s blessing as well as his correct attitude. He cannot shape Heaven’s Will but he can correct his attitude. He can choose to remain modest. Heaven and men despise the classic arrogant, conceited, and boastful CEO. Any corporation, which has behaved as a good citizen and made contributions to its community during the good times, will have their community’s moral support during the bad ones. Goizueta’s Coca Cola and the devotion Atlanta feels for Coca Cola come to mind.

3. Balances power by taking away from those managers/divisions/subsidiaries that have too much power and delegating it to those that have little, especially to those with plenty of merits. Such policy is wise, as it will not allow power to accumulate in the hands of a single entity. In this way, the CEO avoids centers of power, as well as powerful enemies, and obtains the gratitude of the other managers. This is what Jeff Immelt of GE should have done but failed to do with GE Capital well before the crash of 2008. And this is what Warren Buffet does so successfully – takes away from cash rich insurance companies and gives to undervalued corporations managed by what he considers are humble CEOs.

4. Allows no one to know how powerful and successful his corporation has become. In this way he will attract neither ambitious competitors nor the wrath of Heaven.

5. Allows all competitors to believe success was easy. Hide any information that might reveal how hard and how long they had to work to accomplish their goals.

INVESTMENT ADVICE:

Richard Wilhelm tells us that out of the 64 Hexagrams, this is the only one in which all lines are favorable (to invest).

· Wilhelm says: “There are not many hexagrams in the Book of Changes in which all the lines have an exclusively favorable meaning, as in the hexagram of modesty. This shows how great a value Chinese wisdom places on this virtue.”

The TAO, he tells us, recognizes that Modesty is one of the greatest virtues in man (CEO) and recognizes that success will come only to those who practice Modesty.

The wizards of the investment world such as Buffet, Templeton and Soros, have always been known for their modesty.

We should note that the law of cycles is also reflected in the stock prices. When the price of a stock is too high or too YANG (market value is greater than book value), and the market realizes this, the market will begin to sell it off. Or, on the other hand, when the price of the stock is too low or too YIN (market value is below book value), and the market realizes this, it will begin to buy it.

Applied to the world of investing, this is the Hexagram of Warren Buffett as an asset allocator when he takes liquidity from the cash rich insurance companies to invest it in undervalued stocks.

Warren Buffett says quoting Ben Graham; “In the short run, the market is a voting machine. In the long run, it's a weighing machine.”

The I Ching says: “Thus the superior man reduces that which is too much, and augments that which is too little. He weighs things and makes them equal”.

This of course is the essence of a good Long – Short Hedge Fund manager.

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

By itself (no lines) the Hexagram is positive because humility always is the way of the Superior CEO.

MODESTY creates success.

The superior man carries things through.

It is the law of heaven to make fullness empty and to make full what is modest; when the sun is at its zenith, it must, according to the law of heaven, turn toward its setting, and at its nadir it rises toward a new dawn. In obedience to the same law, the moon when it is full begins to wane, and when empty of light it waxes again. This heavenly law works itself out in the fates of men also. It is the law of earth to alter the full and to contribute to the modest. High mountains are worn down by the waters, and the valleys are filled up. It is the law of fate to undermine what is full and to prosper the modest. And men also hate fullness and love the modest.

The destinies of men are subject to immutable laws that must fulfill themselves. But man has it in his power to shape his fate, according as his behavior exposes him to the influence of benevolent or of destructive forces. When a man holds a high position and is nevertheless modest, he shines with the light of wisdom; if he is in a lowly position and is modest, he cannot be passed by. Thus the superior man can carry out his work to the end without boasting of what he has achieved.

Almost all the lines are positive for investing, particularly the lines in the 1^st, 2^nd and 3^rd places.

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

· Boeing Co. BA under CEO W. James McNerney

· priceline.com Incorporated PCLN under CEO Jeffery H. Boyd

· Seattle Genetics Inc. SGEN under CEO Clay B. Siegall

THE LINES

SIX IN THE FIRST PLACE

Managerial Issue: The CEO – managing with humility – to avoid resistance.

Managerial Lesson: Be unassuming.

Managerial Warning: At the first stage of the Modesty Time-Space, the I Ching warns the CEO planning is good and necessary but a minute detailed plan is not Modesty but arrogance. The US Marines are right: quick, forceful and determined execution even with little planning (humility) is more important than excessive minute detailed planning with weak execution (arrogance).

Managerial Advice: The Superior CEO:

Establishes the goals and objectives (the what) but emphasizes the action plan (the how). This would appear to go against the common belief that focusing on the goal, writing it and becoming committed to it is the key to success. The goal might appear necessary as a reference point but a simple action plan and its execution seem much more important. After all, the devil is the detail but not in the absolute detail.
Keeps it simple – action plans should be kept simple. Complexity that places too many demands on details will bog down the executives and create resistance.
Is humble when executing any task, not matter how difficult this might be or how much resistance he might encounter. If a CEO claims victory before executing his plan, he will find opposition from Heaven as well as from men.
Makes the action plan known to all in the corporation and gives all the necessary orders for its proper execution, but without engaging in self-praise for the success he will supposedly obtain. In this way he creates neither envy nor hatred nor opposition for that matter.

Investment Advice: Invest

SIX IN THE SECOND PLACE

Managerial Issue: The CEO – managing with humility – modestly expressing enthusiasm in victory.

Managerial Lesson: Be down to earth expressive.

Managerial Warning: At the second stage of the Modesty Time-Space, the I Ching warns the CEO neither to hyperbole nor to be flamboyant at times of triumph.

Managerial Advice: The Superior CEO, who has successfully reached his objectives, shows it humbly. That is: by the way he speaks, by the way he dresses, and by the way he behaves generally in public. It is acceptable to allow his managers and competitors to see his joy and enthusiasm. In this way he will transmit his modest enthusiasm onto others and turn his success into something everlasting. This does not imply self-praise expressed in many outward forms, but simply showing his happiness verbally and physically. This goes against the common belief that the CEO must have a sour face even in the moments of triumph. Humbly expressing a winning attitude will create more success – success begets success.

This applies to both the CEO and the corporation. A flamboyant corporation will continue to outreach its own capacity in projects extremely complex that have nothing to do with its main purpose. GE Capital (and GM Capital and all the others XX Capitals of the world such as Porsche’s) were created to finance the purchase of their products not to become Hedge Funds. Those CEOs who “expressed” the corporate triumph by turning them into Hedge Funds were responsible for the massive losses these “Hedge Funds” incurred.

Investment Advice: Invest.

NINE IN THE THIRD PLACE

Managerial Issue: The CEO – managing with humility - handling his own fame.

Managerial Lesson: Be humble.

Managerial Warning: At the third stage of the Modesty Time-Space, the I Ching warns the CEO: a successful and famous CEO who does not know how to handle his fame will come to believe that he and he alone is responsible for all the corporation’s achievements and that he and he alone is worthy of all the merits. All he will get is the contempt and hatred of all his fellow employees and lose his leadership position.

Managerial Advice: The Superior CEO, when successful, is humble in handling his own fame so that he will have the full backing of his fellow workers and the admiration of his competitors in the industry. Humility will also create a great following among his executives, all of whom would want to work for him. By having the admiration of men of merit, he ensures that he and his corporation remain on top.

When a CEO’s face appears on the covers of the mayor magazines such as Fortune Magazine is when the CEO’s true humility will be put to the test.

Investment Advice: Invest.

SIX IN THE FOURTH PLACE

Managerial Issue: The CEO – managing with humility – handling false modesty.

Managerial Lesson: Be measured.

Managerial Warning: At the fourth stage of the Modesty Time-Space, the I Ching warns the CEO humility like any other virtue has its limits and is applicable to the CEO as well as to all the executives/employees in all the positions within the corporate hierarchy. Those who hide behind false modesty either to over exercise their functions (managers) or to avoid them altogether (workers) should be fired.

Managerial Advice: The Superior CEO is humble both in delegating responsibilities and in recognizing the merits of his executives/employees.

The CEO’s executives must recognize their limits and be humble in exercising their power granted to them.
The CEO’s workers in turn must recognize their limits and be humble in recognizing their own merits; that is, an employee should not be rewarded for a job well done because this is the reason they get paid for. Rewards are reserved for the “Above and Beyond”

This is one of the great secrets of the Japanese companies. Humility must be seen as the way of the corporation and not as an exception, and he who has merits but lacks humility should work in special jobs but must never have employees under his charge.

The CEO who is not humble lacks emotional intelligence. He will not be able to keep any initiative under control, will look to protect his job by working only by an operations manual, will not accept authority, and will find his job greater than his emotional abilities.

Investment Advice: Invest.

SIX IN THE FIFTH PLACE

Managerial Issue: The CEO – managing with humility – exercising modesty even when moving aggressively.

Managerial Lesson: Be objective.

Managerial Warning: At the fifth stage of the Modesty Time-Space, the I Ching warns the CEO modesty must also be exercised even in aggressive moves such as when launching a hostile takeover campaign against a competitor or in applying punishments and rewards.

Managerial Advice: The Superior CEO does not think that being humble implies not moving aggressively against his competitors or not severely punishing wrong doers. Not to act when needed is not humility but weakness. However, when moving aggressively, the Superior CEO knows he must:

· Be very sure that he is justifiably moving against the proper corporation or punishing the guilty party.

· Be well measured in his movement so that it may be neither too little nor too much. In this way the punishment becomes something very objective and not something personal.

· Be modest yet energetic, determined, and deliberate.

Investment Advice: Invest

SIX IN THE SIXTH PLACE

Managerial Issue: The CEO – managing with humility – modestly applying justice to himself and his own.

Managerial Lesson: Be self-disciplined.

Managerial Warning: At the sixth stage of the Modesty Time-Space, the I Ching warns the CEO humility also demands self-punishment when making mistakes.

Managerial Advice: The Superior CEO punishes himself for his mistakes. This would require humility and a strong will to:

· Accept the blame for his mistakes. This should not be confused with self-indulgent pity.

· Avoid blaming someone else for his mistakes.

· Stay engaged – modesty does not consist in isolating oneself to avoid facing the blame. That would be false modesty.

· Apply punishment justly and fairly to himself as well as to his inner circle. He who can conquer himself can certainly conquer others. And he who imposes upon himself the necessary discipline may apply it to the others.

Investment Advice: Invest.

MANAGERIAL CASES

Boeing Co. BA under CEO W. James McNerney

W. J. McNerney’s Performance: ROI= 10.91% Annualized Return= 1.73%

SPY’s Performance: ROI= 4.07% Annualized Return= 0.66%

W. James McNerney has been CEO since July 2005. Since then, his performance has been better than that of the SPY’s. His performance is supported by two positive lines.

Jack Welch may have been considered a Superior CEO (he had talent but he also had the Mandate of Heaven), but he made a terrible mistake when he chose Immelt as the CEO for General Electric. He should have chosen James McNerney rather than forcing him out after choosing Immelt. Welch used all the information available to pick the next CEO except he never took into consideration the future Time-Space or outcome that would have resulted in choosing each of these two managers. Only the I Ching would have shown him the future Time-Space of General Electric. Choosing Immelt created a negative Time-Space for General Electric as the results have shown:

Jeffrey R. Immelt’s Performance: ROI= (52.62%) Annualized Return= (7.29%)

SPY’s Performance: ROI= 22.01%) Annualized Return= 2.04%

Jeffrey R. Immelt has been CEO since 2001. Since then his performance has been extremely poor for such a large conglomerate. His poor performance comes from his lack of Modesty as evidenced by the fact that when he became CEO of GE, he failed to execute one of the Universe’s basic law:

Everyone knows GE’s main problem was caused by one of its divisions - GE Capital. What Bernanke said about AIG comes to mind: “This was a hedge fund, basically, that was attached to a large and stable insurance company.” Some would say that GE was a Hedge Fund that was attached to a large stable industrial conglomerate. Immelt cannot escape the responsibility of having sufficient time (from 2001 to 2008) to rebalance the corporation’s portfolio, to reduce its dependence on GE Capital’s income (over 50% of total corporate income) and reduce GE Capital’s management excessive power. GE Capital has so much power that GE’s CEO sits on the Board of Directors of the New York Fed. Is he a banker or is he a manufacturer? Does he know what he is?

Even though all analysts will laugh at the possibility a three thousand (five thousand?) year old Oracle can predict the future for the CEOs and investors, those who are still invested in General Electric should seriously consider selling the stock until the Board of Directors changes Immelt for someone who would create a better Time-Space for the future of General Electric, particularly if you look at the Line in the 6^th place.

Points the investor should consider: (James McNerney)

1) THE HEXAGRAM

HEXAGRAM 15 - Ch’ien - Modesty

This hexagram is made up of the trigrams Ken, Keeping Still, mountain, and K'un. The mountain is the youngest son of the Creative, the representative of heaven on earth. It dispenses the blessings of heaven, the clouds and rain that gather round its summit, and thereafter shines forth radiant with heavenly light. This shows what modesty is and how it functions in great and strong men. K'un, the earth, stands above. Lowliness is a quality of the earth: this is the very reason why it appears in this hexagram as exalted, by being placed above the mountain. This shows how modesty functions in lowly, simple people: they are lifted up by it.

THE JUDGEMENT

MODESTY creates success.

The superior man carries things through.

2) THE ADVICE

Within the earth, a mountain: The image Of MODESTY.

Thus the superior man reduces that which is too much,

And augments that which is too little.

He weighs things and makes them equal.

The wealth of the earth in which a mountain is hidden is not visible to the eye, because the depths are offset by the height of the mountain. Thus high and low complement each other, and the result is the plain. Here an effect that it took a long time to achieve, but that in the end seems easy of accomplishment and self-evident, is used as the image of modesty. The superior man does the same thing when he establishes order in the world; he equalizes the extremes that are the source of social discontent and thereby creates just and equable conditions. 1

3) THE LINES:

Six in the second place means:

Modesty that comes to expression.

Perseverance brings good fortune.

"Out of the fullness of the heart the mouth speaketh." When a man's attitude of mind is so modest that this expresses itself in his outward behavior, it is a source of good fortune to him. For the possibility of exerting a lasting influence arises of itself, and no one can interfere.

Six in the fourth place means:

Nothing that would not further modesty In movement.

Everything has its proper measure. Even modesty in behavior can be carried too far. Here, however, it is appropriate, because the place between a worthy helper below and a kindly ruler above carries great responsibility. The confidence of the man in superior place must not be abused nor the merits of the man in inferior place concealed. There are officials who indeed do not strive for prominence; they hide behind the letter of the ordinances, decline all responsibility, accept pay without giving its equivalent in work, and bear empty titles. This is the opposite of what is meant here by modesty. In such a position, modesty is shown by interest in one's work.

4) THE MOVING HEXAGRAM

HEXAGRAM 32 – Heng - Duration

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

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

THE JUDGMENT

DURATION. Success. No blame.

Perseverance furthers.

It furthers one to have somewhere to go.

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

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

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

THE IMAGE

Thunder and wind: the image of DURATION.

Thus the superior man stands firm

And does not change his direction.

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

priceline.com Incorporated PCLN under CEO Jeffery H. Boyd

Jeffery H. Boyd’s Performance: ROI= 5,968.24% Annualized Return= 59.92%

SPY’s Performance: ROI= 37.02% Annualized Return= 3.67%

Jeffery H. Boyd has been CEO of priceline.com since November 2002. Since then, his performance has been that of a Superior CEO specially compared to that of the SPY’s.

Because he has been CEO for almost a decade, we asked the Oracle once more about his future performance: it is Modesty.

Points the investor should consider:

1) THE HEXAGRAM

(Same as Above).

2) THE ADVICE

(Same as Above).

3) THE LINES:

Six in the fourth place means:

Nothing that would not further modesty

In movement.

Six in the fifth place means:

No boasting of wealth before one's neighbor.

It is favorable to attack with force.

Nothing that would not further.

Modesty is not to be confused with weak good nature that lets things take their own course. When a man holds a responsible position, he must at times resort to energetic measures. In doing so he must not try to make an impression by boasting of his superiority but must make certain of the people around him. The measures taken should be purely objective and in no way personally offensive. Thus modesty manifests itself even in severity.

4) THE MOVING HEXAGRAM

HEXAGRAM 31 – Hsien - Influence (Wooing)

The name of the hexagram means "universal," "general," and in a figurative sense "to influence," "to stimulate." The upper trigrams is Tui, the Joyous; the lower is Ken, Keeping Still. By its persistent, quiet influence, the lower, rigid trigram stimulates the upper, weak trigram, which responds to this stimulation cheerfully and joyously. Ken, the lower trigram, is the youngest son; the upper, Tui, is the youngest daughter. Thus the universal mutual attraction between the sexes is represented. In courtship, the masculine principle must seize the initiative and place itself below the feminine principle.

Just as the first part of book I begins with the hexagrams of heaven and earth, the foundations of all that exists, the second part begins with the hexagrams of courtship and marriage, the foundations of all social relationships.

THE JUDGMENT

Influence.

Success.

Perseverance furthers.

To take a maiden to wife brings good fortune.

The weak element is above, the strong below; hence their powers attract each other, so that they unite. This brings about success, for all success depends on the effect of mutual attraction. By keeping still within while experiencing joy without, one can prevent the joy from going to excess and hold it within proper bounds. This is the meaning of the added admonition, "Perseverance furthers," for it is perseverance that makes the difference between seduction and courtship; in the latter the strong man takes a position inferior to that of the weak girl and shows consideration for her. This attraction between affinities is a general law of nature. Heaven and earth attract each other and thus all creatures come into being. Through such attraction the sage influences men's hearts, and thus the world attains peace. From the attractions they exert we can learn the nature of all beings in heaven and on earth.

THE IMAGE

A lake on the mountain: The image of influence.

Thus the superior man encourages people to approach him

By his readiness to receive them.

A mountain with a lake on its summit is stimulated by the moisture from the lake. It has this advantage because its summit does not jut out as a peak but is sunken. The image counsels that the mind should be kept humble and free, so that it may remain receptive to good advice. People soon give up counseling a man who thinks that he knows everything better than anyone else.

Seattle Genetics Inc. SGEN under CEO Clay B. Siegall

Clay B. Siegall’s Performance: ROI= 495.83% Annualized Return= 22.64%

SPY’s Performance: ROI= 37.03% Annualized Return= 3.67%

Clay B. Siegall has been CEO of Seattle Genetics since November 2002. Since then, his performance has been substantially better than that of the SPY’s. His Time-Space has no moving lines therefore the entire Modesty Time Space supports him.

Because he has been CEO for almost a decade, we asked the Oracle once more about his future performance: it is Modesty.

Points the investor should consider:

1) THE HEXAGRAM

((Same as Above)).

2) THE ADVICE

((Same as Above)).

3) THE LINES:

No Moving Lines.

4) THE MOVING HEXAGRAM

Because there are no moving lines, there is no Moving Hexagram. Thus the Judgment becomes the focusing point.

MODESTY creates success.

The superior man carries things through.