HEXAGRAM 16: ORIGINAL, INTERPRETATION AND CASES

HEXAGRAM 16 – Yu - Enthusiasm

Above CHEN THE AROUSING, THUNDER

Below K'UN THE RECEPTIVE, EARTH

The strong line in the fourth place, that of the leading official,

meets with response and obedience from all the other lines, which are all weak.

· The attribute of the upper trigram, Chen, is movement;

· the attributes of K'un, the lower, are obedience and devotion.

This begins a movement that

· meets with devotion

and therefore

· inspires enthusiasm, carrying all with it.

Of great importance, furthermore, is

the law of movement along the line of least resistance,

which in this hexagram is enunciated as the law

· for natural events and

· for human life.

THE JUDGMENT

ENTHUSIASM.

It furthers one

· to install helpers And

· to set armies marching.

The time of ENTHUSIASM derives from the fact that there is at hand

an eminent man who

· is in sympathy with the spirit of the people and

· acts in accord with it.

Hence he finds universal and willing obedience.

To arouse enthusiasm it is necessary for a man to adjust himself and his ordinances

to the character of those whom he has to lead.

The inviolability of natural laws rests on this principle of

movement along the line of least resistance.

These laws are not forces external to things

but represent the harmony of movement immanent in them.

That is

· why the celestial bodies do not deviate from their orbits and

· why all events in nature occur with fixed regularity.

It is the same with human society:

· only such laws as are rooted in popular sentiment can be enforced,

· while laws violating this sentiment merely arouse resentment.

Again,

it is enthusiasm that enables us to install helpers

for the completion of an undertaking without fear of secret opposition.

It is enthusiasm too that can unify mass movements, as in war,

so that they achieve victory.

THE IMAGE

Thunder comes resounding out of the earth: The image of ENTHUSIASM.

Thus the ancient kings

· made music In order to honor merit, And

· offered it with splendor To the Supreme Deity,

· Inviting their ancestors to be present.

When, at the beginning of summer,

· thunder - electrical energy - comes rushing forth from the earth again, and

· the first thunderstorm refreshes nature,

a prolonged state of tension is resolved.

Joy and relief make themselves felt.

So too,

music has power

· to ease tension within the heart and

· to loosen the grip of obscure emotions.

The enthusiasm of the heart expresses itself involuntarily

· in a burst of song,

· in dance and rhythmic movement of the body.

From immemorial times

the inspiring effect of the invisible sound that

· moves all hearts, and

· draws them together,

has mystified mankind.

Rulers have made use of this natural taste for music;

they elevated and regulated it.

Music was looked upon as something serious and holy,

designed to purify the feelings of men.

It fell to music

· to glorify the virtues of heroes and thus

· to construct a bridge to the world of the unseen.

In the temple men drew near to God with music and pantomimes

(out of this later the theater developed).

Religious feeling for the Creator of the world was united with

the most sacred of human feelings,

that of reverence for the ancestors.

The ancestors were invited to these divine services

· as guests of the Ruler of Heaven and

· as representatives of humanity in the higher regions.

This uniting of the human past with the Divinity

in solemn moments of religious inspiration

established the bond between God and man.

The ruler who revered the Divinity in revering his ancestors

became thereby the Son of Heaven,

in whom the heavenly and the earthly world met in mystical contact.

These ideas are the final summation of Chinese culture.

Confucius has said of the great sacrifice at which these rites were performed:

"He who

· could wholly comprehend this sacrifice

· could rule the world as though it were spinning on his hand."

THE LINES

Six at the beginning means:

Enthusiasm that expresses itself

Brings misfortune.

A man in an inferior position has aristocratic connections about which

he boasts enthusiastically.

This arrogance inevitably invites misfortune.

Enthusiasm should never be an egotistic emotion;

it is justified only when it is a general feeling that unites one with others.

Six in the second place means:

Firm as a rock.

Not a whole day.

Perseverance brings good fortune.

This describes a person who does not allow himself to be misled by any illusions.

While

· others are letting themselves be dazzled by enthusiasm,

· he recognizes with perfect clarity the first signs of the time.

Thus

· neither flatters those above

· nor neglects those beneath him;

he is as firm as a rock.

When the first sign of discord appears,

· knows the right moment for withdrawing and

· does not delay even for a day.

Perseverance in such conduct will bring good fortune.

Confucius says about this line:

“To know the seeds, that is divine indeed.

· In his association with those above him, the superior man does not flatter.

· In his association with those beneath him, he is not arrogant.

For he knows the seeds.

The seeds are

· the first imperceptible beginning of movement,

· the first trace of good fortune (or misfortune) that shows itself.

The superior man

· perceives the seeds and

· immediately takes action.

He does not wait even a whole day.

In the Book of Changes it is said:

"Firm as a rock.

Not a whole day.

Perseverance brings good fortune."

Firm as a rock, what need of a whole day?

The judgment can be known.

The superior man knows

· what is hidden and

· what is evident.

· He knows weakness,

· he knows strength as well.

Hence the myriad’s look up to him.

Six in the third place means:

Enthusiasm that looks upward creates remorse.

Hesitation brings remorse.

This line is the opposite of the preceding one:

· the latter bespeaks self-reliance, while

· here there is enthusiastic looking up to a leader.

If a man hesitates too long, this also will bring remorse.

The right moment for approach must be seized:

only then will he do the right thing.

0 Nine in the fourth place means:

The source of enthusiasm.

He achieves great things.

Doubt not.

You gather friends around you

As a hair clasp gathers the hair.

This describes a man who is able to awaken enthusiasm through his

· own sureness and

· freedom from hesitation.

He attracts people because he

· has no doubts and

· is wholly sincere.

Owing to his confidence in them he

· wins their enthusiastic cooperation and

· attains success.

Just as

· a clasp draws the hair together and holds it, so

· he draws men together by the support he gives them.

Six in the fifth place means:

Persistently ill and still does not die.

Here enthusiasm is obstructed.

A man is under constant pressure, which prevents him from breathing freely.

However, this pressure has its advantage –

it prevents him from consuming his powers in empty enthusiasm.

Thus constant pressure can actually serve to keep one alive.

Six at the top means:

Deluded enthusiasm.

But if after completion one changes,

There is no blame.

It is a bad thing for a man to let himself be deluded by enthusiasm.

But if

this delusion has run its course, and

he is still capable of changing,

he is freed of error.

A sober awakening from false enthusiasm is

· quite possible and

· very favorable.

16 ENTHUSIASM

MANAGERIAL ISSUE:

The CEO – managing the employees’ enthusiasm or passion to achieve a great goal.

Hexagram 16 focuses on the CEO’s ability to manage the employees’ enthusiasm to achieve great tasks. Here we have a strong active CEO surrounded by weak executives/employees. However, this CEO knows how to vibrate in unison with the spirit of the employees, to challenge them to achieve great goals. Thus all the employees want to follow him, to work with him, and to pledge allegiance to him. This combination of a strong CEO, who wants to get the corporation going, and the enthusiasm he generates in them, creates the conditions for the corporation’s passion to succeed.

The Superior CEO:

1) Sets up goals for the employees in accordance with what is natural for them – to do what they love, what they are passionate about.

2) Helps people express their passion by helping them do what is natural to them.

3) Sets up and enforces rules encouraging employees to perform their best; particularly rules that reward merit.

Under the Enthusiasm, the I Ching describes a corporation as group of people who have gathered around or who have been brought together by a leader to perform specific tasks for which they are naturally suited. Bill Gates gathered the best programmers who ever dreamed of creating the best software in the world. Bill Gates was successful as long as he rewarded them for creating the most innovative software. The same can be said of Google. Unfortunately, there have been too many cases of unsuccessful CEOs who tried to run their corporations by asking their managers and employees to become experts at fields which were not natural to them, fields for which they felt no passion.

MANAGERIAL LESSON:

The I Ching warns the CEO that:

a) To force the employees to go against what is natural for them will not only fail to generate the enthusiasm so badly needed for success but quite on the contrary, it will generate opposition. Corporations should stay within their “sphere of influence”

b) Only enthusiasm or passion will create the conditions for success.

c) The key to generating enthusiasm (passion) is to honor and reward merit.

The Superior CEO:

1) Challenges the employees to reach their highest goals (raises the bar). Employees filled with enthusiasm will follow the CEO in executing the impossible.

2) Imitates nature. Nature makes laws in accordance to the nature of each thing so that there will be neither conflicts nor resistance to these laws. In the same way, the CEO must study the nature, characteristics, and ego of the employees to set up plans and establish goals in accordance with the corporation as a whole entity. Such plans that go along the lines of the employee’s nature will, in turn, create enthusiasm (passion) amongst the employees, and it is the enthusiasm that will make them want to reach the goals. The CEO must keep in mind that passion creates unity of purpose amongst the employees.

3) Uses music as a way to arouse enthusiasm or passion. Everyday more and more CEOs are incorporating music into the working environment as a way of creating more enthusiasm and of subconsciously encouraging the employees to reach their goals. Music bonds people together, in the same way music used to bond the Roman legions when going to war. Music quickens the spirit and sharpens the intelligence, particularly Mozart’s music.

The I Ching says: Confucius has said of the great sacrifice at which these rites were performed: "He who could wholly comprehend this sacrifice could rule the world as though it were spinning on his hand."

The CEO’s task is very simple:

a) Reach deeply within each employee’s heart and touch his passion.

b) Create the necessary environment so that his passion will come out and stay alive.

The I Ching compares the task of the CEO to the Sun and the employees to the planets. The planets gladly follow the Sun because the Sun leads them by doing two simple things: by vibrating in unison with them and by asking them to do only what comes natural to them, that is, follow gravity.

INVESTMENT ADVICE:

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

By itself (no lines) the Hexagram is positive because the CEO is able to generate enthusiasm and arouse the employees to achieve great goals.

ENTHUSIASM.

It furthers one to install helpers

And to set armies marching.

The time of ENTHUSIASM derives from the fact that there is at hand an eminent man who is in sympathy with the spirit of the people and acts in accord with it. Hence he finds universal and willing obedience. To arouse enthusiasm it is necessary for a man to adjust himself and his ordinances to the character of those whom he has to lead. The inviolability of natural laws rests on this principle of movement along the line of least resistance. These laws are not forces external to things but represent the harmony of movement immanent in them. That is why the celestial bodies do not deviate from their orbits and why all events in nature occur with fixed regularity. It is the same with human society: only such laws as are rooted in popular sentiment can be enforced, while laws violating this sentiment merely arouse resentment.

Again, it is enthusiasm that enables us to install helpers for the completion of an undertaking without fear of secret opposition. It is enthusiasm too that can unify mass movements, as in war, so that they achieve victory.

Even though the Hexagram tends to be positive, this is not the case with the lines. Only two lines are positive (one is a Good Fortune) and four tend to be negative for investing.

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

First we will review the performance of a manager who embodied the concept of Enthusiasm while she was CEO. That is the case of Meg Whitman of eBay.

· eBay EBAY - Meg Whitman as CEO (1998 – 2007)

Second, we will compare three corporations with similar Enthusiasm Time - Spaces created by their actual CEOs.

· The Goldman Sachs Group GS under CEO Lloyd Blankfein

· Kinder Morgan KMI under CEO Richard D. Kinder

· ON Semiconductor Corp. ONNN under CEO Keith D. Jackson

· NetApp, Inc. NTAP under CEO Thomas Georgens

Comparing four corporations with similar Enthusiasm Time - Spaces created by their CEOs we can more easily understand which CEOs apply the Enthusiasm properly and which do not.

THE LINES

SIX IN THE FIRST PLACE

Managerial Issue: The CEO – managing the employees’ enthusiasm or passion to achieve a great goal – generating false enthusiasm.

Managerial Lesson: Be unselfish.

Managerial Warning: At the first stage of the Enthusiasm Time-Space, the I Ching describes a pompous CEO with low social ranking striving to achieve high social ranking. He only speaks of his personal influence over important people. His efforts to bring forth the passion of his employees are aimed at furthering himself or others outside the corporation rather than the employees. He is leading the corporation to its destruction by attempting to generate enthusiasm/passion asking the employees to do that which goes against their nature.

Managerial Advice: The Superior CEO does not to generate enthusiasm out of selfish motives. He knows the purpose of bringing forth the employees’ passion is to bond with the employees rather than to bond with outsiders not matter how influential they may be.

Investment Advice: Do not invest.

SIX IN THE SECOND PLACE

Managerial Issue: The realist CEO – managing the employees’ enthusiasm/passion to achieve a great goal – generating real enthusiasm.

Managerial Lesson: Be realistic / tenacious.

Managerial Warning: At the second stage of the Enthusiasm Time-Space, the I Ching warns the CEO that flattery and arrogance will not stop him from following the BOD’s wrong policies.

How could he stop from executing wrong policies when he is flattering his superiors – the same ones who created such policies (i.e. the Board of Directors) and the same ones who are telling him to continue?

How can he stop implementing his own wrong policies if he is arrogant with his employees and will not let them speak up nor will he listen to them when he should?

Here is a fascinating piece of advice from Confucius himself to the CEO:

· “To know the seeds, that is divine indeed. For he knows the seeds. The seeds are the first imperceptible beginning of movement, the first trace of good fortune (or misfortune) that shows itself. The superior man perceives the seeds and immediately takes action. He does not wait even a whole day. In the Book of Changes it is said: "Firm as a rock. Not a whole day. Perseverance brings good fortune." Firm as a rock, what need of a whole day? The judgment can be known. The superior man knows what is hidden and what is evident. He knows weakness, he knows strength as well. Hence the myriad’s look up to him. “

Managerial Advice: The Superior CEO is realistic. He is able to generate enthusiasm amongst the employees, without letting anyone or anything fool him into blindly following this passion and take the wrong action. In this line we have a very able CEO, one who can think out of the box and foretell well ahead of the times when to move and when to stop. He is able to do so because he is humble. He moves quickly to stop what is wrong and to support what is right.

The I Ching advises the CEO to deal with people equally (as above, so below). He should be even handed with his superiors as well as with his employees.

· The I Ching says” In his association with those above him, the superior man does not flatter. In his association with those beneath him, he is not arrogant”.

This attitude is crucial in knowing when to stop. And the best time to stop is when he sees the first signs of disagreement amongst the employees because he knows that passion cannot withstand divisions.

Investment Advice: Invest.

SIX IN THE THIRD PLACE

Managerial Issue: The self-deluding CEO – managing the employees’ enthusiasm or passion to achieve a great goal – bringing forth the passion yet not knowing when to stop.

Managerial Lesson: Be resolute.

Managerial Warning: At the third stage of the Enthusiasm Time-Space, the I Ching describes a CEO who is the opposite of the one in the line before. In the previous line the CEO could generate the proper enthusiasm on his own. In this line, this CEO is the opposite because he depends on someone else to generate enthusiasm; thus, the I Ching warns him he will fail in reaching his objectives. That is, such an insecure CEO will miss the opportunity to execute the plans. Self-delusion leads to failure

Managerial Advice: The Superior CEO is resolute when keeping in touch with his employees. He makes sure nothing (flattery or arrogance) keeps him away from maintaining contact with his employees. In that way, he will know when to take the initiative or when to stop executing the wrong one.

Investment Advice: Do not invest.

NINE IN THE FOURTH PLACE

Managerial Issue: The CEO – managing the employees’ enthusiasm/passion to achieve a great goal – bringing forth passion successfully.

Managerial Lesson: Be confident.

Managerial Warning: At the fourth stage of the Enthusiasm Time-Space, the I Ching describes a CEO who is able to bring forth the necessary passion for success.

Managerial Advice: The Superior CEO generates great enthusiasm because he is self-assured, honest, tenacious and trusting. These qualities serve him to gather the best employees and partners. The enthusiasm he generates makes everyone willing to join him and cooperate with him. With such enthusiasm he accomplishes great tasks. It is such enthusiasm that makes him successful.

Investment Advice: Invest.

SIX IN THE FIFTH PLACE

Managerial Issue: The CEO – managing the employees’ enthusiasm/passion to achieve a great goal – failing to generate the enthusiasm/passion, but managing to survive.

Managerial Lesson: Be hopeful.

Managerial Warning: At the fifth stage of the Enthusiasm Time-Space, the I Ching warns the CEO his efforts to bring forth passion from his employees will fail because of constant pressures from various quarters – employees, industry, and government.

Managerial Advice: The Superior CEO is grateful for all this pressure. Thanks to this pressure he will be kept away from following after the wrong enthusiasm/passion. By not being able to act, he saves the corporation and himself. Sometimes good comes out of evil.

Investment Advice: Do not invest.

SIX IN THE SIXTH PLACE

Managerial Issue: The self-deluding CEO – managing the employees’ enthusiasm to achieve a great goal – realizing he was chasing after a false passion.

Managerial Lesson: Be sober.

Managerial Warning: At the sixth stage of the Enthusiasm Time-Space, the I Ching warns the CEO that in an act of self-delusion, he has been chasing after the wrong passion.

Managerial Advice: The Superior CEO knows he can correct even the worse of the conditions provided he is humble, honest and willing, and that an appropriate correction could lead to a transformation that could save the corporation.

In this case, the I Ching advices the CEO there is still hope for him because it is alright to pursue an objective under the wrong enthusiasm/passion provided he realizes his mistake and admits it quickly and publicly.

Investment Advice: Do not invest.

MANAGERIAL CASES

eBay - Meg Whitman as CEO (1998 – 2007)

Meg Whitman’s Performance: ROI= 1,907.78% Annualized Return= 38.71%.

SPY’s Performance: ROI= 47.60% Annualized Return= 4.34%

Meg Whitman was CEO of eBay from September 1998 to November 2007. During that time her performance was that of a Superior CEO. She was able to follow the I Ching’s mandate:

ENTHUSIASM.

It furthers one to install helpers

And to set armies marching.

Points the investor should consider:

1) THE HEXAGRAM

HEXAGRAM 16 – Yu - Enthusiasm

The strong line in the fourth place, that of the leading official, meets with response and obedience from all the other lines, which are all weak. The attribute of the upper trigram, Chen, is movement; the attributes of K'un, the lower, are obedience and devotion. This begins a movement that meets with devotion and therefore inspires enthusiasm, carrying all with it. Of great importance, furthermore, is the law of movement along the line of least resistance, which in this hexagram is enunciated as the law for natural events and for human life.

THE JUDGMENT

ENTHUSIASM.

It furthers one to install helpers

And to set armies marching.

2) THE ADVICE

Thunder comes resounding out of the earth: The image of ENTHUSIASM.

Thus the ancient kings made music In order to honor merit,

And offered it with splendor

To the Supreme Deity,

Inviting their ancestors to be present.

When, at the beginning of summer, thunder - electrical energy - comes rushing forth from the earth again, and the first thunderstorm refreshes nature, a prolonged state of tension is resolved. Joy and relief make themselves felt. So too, music has power to ease tension within the heart and to loosen the grip of obscure emotions. The enthusiasm of the heart expresses itself involuntarily in a burst of song, in dance and rhythmic movement of the body. From immemorial times the inspiring effect of the invisible sound that moves all hearts, and draws them together, has mystified mankind.

Rulers have made use of this natural taste for music; they elevated and regulated it. Music was looked upon as something serious and holy, designed to purify the feelings of men. It fell to music to glorify the virtues of heroes and thus to construct a bridge to the world of the unseen. In the temple men drew near to God with music and pantomimes (out of this later the theater developed). Religious feeling for the Creator of the world was united with the most sacred of human feelings, that of reverence for the ancestors. The ancestors were invited to these divine services as guests of the Ruler of Heaven and as representatives of humanity in the higher regions. This uniting of the human past with the Divinity in solemn moments of religious inspiration established the bond between God and man. The ruler who revered the Divinity in revering his ancestors became thereby the Son of Heaven, in whom the heavenly and the earthly world met in mystical contact. These ideas are the final summation of Chinese culture.

Confucius has said of the great sacrifice at which these rites were performed:

"He who could wholly comprehend this sacrifice could rule the world as though it were spinning on his hand."

3) THE LINES:

There are no moving lines.

4) THE MOVING HEXAGRAM

There is no moving Hexagram because there are no moving lines. The Judgment becomes even more important.

THE JUDGMENT

ENTHUSIASM.

It furthers one to install helpers

And to set armies marching.

The Goldman Sachs Group GS under CEO Lloyd Blankfein

Lloyd C. Blankfein’s Performance: ROI= (13.61%) Annualized Return= (2.79%)

SPY’s Performance: ROI= 0.16% Annualized Return= 0.03%

Lloyd C. Blankfein has been CEO of Goldman Sachs since June 2006. Since then, his performance has been worst that that of the SPY’s. All this, in spite of the fact that they are supposed to be the geniuses of Wall Street, that they profited from the boom as well as the bust of the real estate market, and that they have benefited enormously from large government loans thanks to their government connections. His poor performance was announced by the two negative lines of his Hexagram.

There are few corporations in the world that generate more enthusiasm amongst its employees that Goldman Sachs. This is particularly the case because no other corporation has the earnings to reward merit with bonuses in a way that other corporations can only dream of.

However, the ENTHUSIASM Time-Space of Goldman Sachs under CEO Lloyd Blankfein, shows he has failed to create enthusiasm as shown by the lines and the price of the stock. Furthermore, under his mandate, Goldman Sachs has created extreme public resentment by the way Goldman generated massive profits by making money with the boom as well as with the bust of the real estate market. This public resentment is actually putting the corporation in danger. Matt Taibbi’s comments about Goldman Sachs have found resonance in the world: “The world's most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”

Points the investor should consider:

1) THE HEXAGRAM

(Same as Above).

2) THE ADVICE

(Same as Above).

3) THE LINES:

Six at the beginning means:

Enthusiasm that expresses itself

Brings misfortune.

A man in an inferior position has aristocratic connections about which he boasts enthusiastically. This arrogance inevitably invites misfortune. Enthusiasm should never be an egotistic emotion; it is justified only when it is a general feeling that unites one with others.

Six in the fifth place means:

Persistently ill and still does not die.

Here enthusiasm is obstructed. A man is under constant pressure, which prevents him from breathing freely. However, this pressure has its advantage - it prevents him from consuming his powers in empty enthusiasm. Thus constant pressure can actually serve to keep one alive.

4) THE MOVING HEXAGRAM

HEXAGRAM 17 – Sui - Following

The trigram Tui, the Joyous, whose attribute is gladness, is above; Chen, the Arousing, which has the attribute of movement, is below. Joy in movement induces following. The Joyous is the youngest daughter, while the Arousing is the eldest son. An older man defers to a young girl and shows her consideration. By this he moves her to follow him.

THE JUDGMENT

FOLLOWING has supreme success.

Perseverance furthers.

No blame.

In order to obtain a following one must first know how to adapt oneself. If a man would rule he must first learn to serve, for only in this way does he secure from those below him the joyous assent that is necessary if they are to follow him. If he has to obtain a following by force or cunning, by conspiracy or by creating factions, he invariably arouses resistance, which obstructs willing adherence. But even joyous movement can lead to evil consequences, hence the added stipulation, "Perseverance furthers"-that is, consistency in doing right - together with "No blame." Just as we should not ask others to follow us unless this condition is fulfilled, so it is only under this condition that we can in turn follow others without coming to harm.

The thought of obtaining a following through adaptation to the demands of the time is a great and significant idea; this is why the appended judgment is so favorable.

THE IMAGE

Thunder in the middle of the lake: The image of FOLLOWING.

Thus the superior man at nightfall

Goes indoors for rest and recuperation.

In the autumn electricity withdraws into the earth again and rests. Here it is the thunder in the middle of the lake that serves as the image - thunder in its winter rest, not thunder in motion. The idea of following in the sense of adaptation to the demands of the time grows out of this image.

Thunder in the middle of the lake indicates times of darkness and rest. Similarly, a superior man, after being tirelessly active all day, allows himself rest and recuperation at night. No situation can become favorable until one is able to adapt to it and does not wear himself out with mistaken resistance.

Kinder Morgan KMI under CEO Richard D. Kinder

The time-space created by Kinder Morgan under its CEO Richard Kinder is much better because the lines point to the ability of the CEO to create a better Enthusiasm Time–Space than the Time-Space of Goldman Sachs under CEO Lloyd Blankfein.

Richard D. Kinder’s performance is difficult to measure because of KMI’s relatively recent IPO; however, it would appear his performance has been excellent since he became CEO on May 2007. The line is very propitious.

Points the investor should consider:

1) THE HEXAGRAM

(Same as Above).

2) THE ADVICE

(Same as Above).

3) THE LINES:

0 Nine in the fourth place means:

The source of enthusiasm.

He achieves great things.

Doubt not.

You gather friends around you

As a hair clasp gathers the hair.

This describes a man who is able to awaken enthusiasm through his own sureness and freedom from hesitation. He attracts people because he has no doubts and is wholly sincere. Owing to his confidence in them he wins their enthusiastic cooperation and attains success. Just as a clasp draws the hair together and holds it, so he draws men together by the support he gives them.

4) THE MOVING HEXAGRAM

HEXAGRAM 02 - K'un - THE RECEPTIVE

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

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

THE JUDGMENT

THE RECEPTIVE brings about sublime success,

Furthering through the perseverance of a mare.

If the superior man undertakes something and tries to lead,

He goes astray;

But if he follows, he finds guidance

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

To forego friends in the east and north.

Quiet perseverance brings good fortune.

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

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

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

THE IMAGE

The earth's condition is receptive devotion.

Thus the superior man who has breadth of character

Carries the outer world.

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

ON Semiconductor Corp. ONNN under CEO Keith D. Jackson

Keith D. Jackson’s Performance: ROI= 435.85% Annualized Return= 21.15%

SPY’s Performance: ROI= 34.94% Annualized Return= 3.49%

Keith D. Jackson has been CEO of ON Semiconductor since November 2002. Since then, his performance has been excellent compared to the SPY’s.

Because he has been CEO for almost a decade, we asked the Oracle once more about his future Time-Space: it is the Enthusiasm.

His new Time-Space has no moving lines, therefore his performance will probably be as excellent in the same way as that of Meg Whitman when she was CEO of eBay.

Points the investor should consider:

1) THE HEXAGRAM

((Same as Above)).

2) THE ADVICE

((Same as Above)).

3) THE LINES:

There are no moving lines.

4) THE MOVING HEXAGRAM

There is no moving hexagram because there are no moving lines. The Judgment becomes even more important.

THE JUDGMENT

ENTHUSIASM.

It furthers one to install helpers

And to set armies marching.

THE IMAGE

Thunder comes resounding out of the earth: The image of ENTHUSIASM.

Thus the ancient kings made music In order to honor merit,

And offered it with splendor

To the Supreme Deity,

Inviting their ancestors to be present.

NetApp, Inc. NTAP under CEO Thomas Georgens

Thomas Georgens’ Performance: ROI= 97.07% Annualized Return= 40.45%

SPY’s Performance: ROI= 25.32% Annualized Return= 11.96%

Thomas Georgens has been CEO of NetApp since August 2009. Since then, his performance has been better than that of the SPY’s. His performance is supported by the second line but the third line points to possible difficulties.

Points the investor should consider:

1) THE HEXAGRAM

(Same as Above).

2) THE ADVICE

(Same as Above).

3) THE LINES:

Six in the second place means:

Firm as a rock.

Not a whole day.

Perseverance brings good fortune.

This describes a person who does not allow himself to be misled by any illusions. While others are letting themselves be dazzled by enthusiasm, he recognizes with perfect clarity the first signs of the time. Thus he neither flatters those above nor neglects those beneath him; he is as firm as a rock. When the first sign of discord appears, he knows the right moment for withdrawing and does not delay even for a day. Perseverance in such conduct will bring good fortune.

Confucius says about this line:

“To know the seeds, that is divine indeed. In his association with those above him, the superior man does not flatter. In his association with those beneath him, he is not arrogant. For he knows the seeds. The seeds are the first imperceptible beginning of movement, the first trace of good fortune (or misfortune) that shows itself. The superior man perceives the seeds and immediately takes action. He does not wait even a whole day. In the Book of Changes it is said: "Firm as a rock. Not a whole day. Perseverance brings good fortune."

Firm as a rock, what need of a whole day?

The judgment can be known.

The superior man knows what is hidden and what is evident.

He knows weakness, he knows strength as well.

Hence the myriad’s look up to him.

Six in the third place means:

Enthusiasm that looks upward creates remorse.

Hesitation brings remorse.

This line is the opposite of the preceding one: the latter bespeaks self-reliance, while here there is enthusiastic looking up to a leader. If a man hesitates too long, this also will bring remorse. The right moment for approach must be seized: only then will he do the right thing.

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.