HEXAGRAM 19: ORIGINAL, INTERPRETATION AND CASES

 

 

 

HEXAGRAM 19 – Lin - Approach

 

Above K'UN  THE RECEPTIVE, EARTH

Below TUI    THE JOYOUS, LAKE

 

The Chinese word Lin has a range of meanings

that is not exhausted by any single word of another language. 

The ancient explanations in the Book of Changes give as its

1.   first meaning, "becoming great."

·        What becomes great are the two strong lines growing into the hexagram from below;

·        the light-giving power expands with them. 

2.   The meaning is then further extended to include the concept of approach,

especially the approach of

·        what is strong and highly placed

·        in relation to what is lower. 

3.   Finally the meaning includes

·        the attitude of condescension of a man in high position toward the people,

·        and in general the setting to work on affairs. 

This hexagram is linked with the twelfth month (January-February),

when, after the winter solstice,

the light power begins to ascend again.

 

THE JUDGMENT

 

APPROACH has supreme success. 

Perseverance furthers.

When the eighth month comes,

There will be misfortune.

 

The hexagram as a whole points to a time of joyous, hopeful progress. 

Spring is approaching. 

Joy and forbearance bring high and low nearer together. 

Success is certain. 

But we must work with determination and perseverance

to make full use of the propitiousness of the time. 

And one thing more: spring does not last forever. 

In the eighth month the aspects are reversed. 

Then only two strong, light lines are left; these

·        do not advance but

·        are in retreat (see next hexagram). 

We must take heed of this change in good time. 

If

·        we meet evil before it becomes reality –

before it has even begun to stir –

·        we can master it.

 

THE IMAGE

 

The earth above the lake: The image of APPROACH.

Thus the superior man

·        is inexhaustible In his will to teach, And

·        without limits In his tolerance and protection of the people.

 

The earth borders upon the lake from above 1. 

This symbolizes the approach and condescension of the man of higher position

to those beneath him. 

The two parts of the image indicate what his attitude toward these people will be. 

·        Just as the lake is inexhaustible in depth,

o   so the sage is inexhaustible in his readiness to teach mankind,

and

·        just as the earth is boundlessly wide, sustaining and caring for all creatures on it,

o   so the sage sustains and cares for all people and excludes no part of humanity.

 

THE LINES

 

0 Nine at the beginning means:

Joint approach.

Perseverance brings good fortune.

 

The good begins to prevail and to find response in influential circles. 

This in turn is an incentive to men of ability. 

It is well to join this upward trend, but

·        we must not let ourselves be carried away by the current of the time;

·        we must adhere perseveringly to what is right. 

This brings good fortune.

 

0 Nine in the second place means: 

Joint approach.

Good fortune.

Everything furthers.

 

·        When the stimulus to approach comes from a high place, and

·        when a man has the inner strength and consistency that need no admonition,

good fortune will ensue. 

Nor need the future cause any concern. 

He is well aware

·        that everything earthly is transitory, and

·        that a descent follows upon every rise,

but need not be confused by this universal law of fate. 

Everything serves to further. 

Therefore

he will travel the paths of life

·        swiftly,

·        honestly, and

·        valiantly.

 

Six in the third place means:

Comfortable approach.

Nothing that would further.

If

·        one is induced to grieve over it,

·        One becomes free of blame.

 

Things are going well for a man:

he achieves power and influence. 

But in this lies the danger that he

·        may relax, and confident of his position,

·        allow the easygoing, careless mood to show itself in his dealings with other people. 

This would inevitably be harmful. 

But there is possibility of a change of mood. 

If

·        he regrets his mistaken attitude and feels the responsibility of an influential position,

·        he frees himself of faults.

 

Six in the fourth place means:

Complete approach.

No blame.

 

While

·        the three lower lines indicate rise to power and influence,

·        the three upper lines show the attitude of persons in higher position

toward those of lower rank for whom they procure influence. 

Here is shown

·        the open-minded approach of a person of high rank to

·        a man of ability whom he draws into his own circle, regardless of class prejudice. 

This is very favorable.

 

Six in the fifth place means:

Wise approach.

This is right for a great prince. 

Good fortune.

 

A prince, or anyone in a leading position, must have

the wisdom to attract to himself people of ability who are expert in directing affairs. 

His wisdom consists both

·        in selecting the right people and

·        in allowing those chosen to have a free hand without interference from him. 

For only through such self-restraint will he find

the experts needed to satisfy all of his requirements.

 

Six at the top means:

Greathearted approach.

Good fortune. 

No blame.

 

A sage

·        who has put the world behind him and

·        who in spirit has already withdrawn from life may, under certain circumstances,

decide

·        to return once more to the here and now and

·        to approach other men. 

This means great good fortune for the men whom he teaches and helps. 

And for him this greathearted humbling of himself is blameless.

 

1.      [See the two trigrams.]

 

 

 

 

 

 

 

 

 

 

19 APPROACH –

 

THE CEO – MANAGING THE APPROACHING SUCCESS AND THE APPROACHING FAILURE

 

 

 

MANAGERIAL ISSUE:

 

Hexagram 19 focuses on the CEO’s managerial efforts to deal with the economic cycles - the approaching boom as well as with the approaching bust that will surely follow.  As the cycle of economic expansion approaches bringing with it greater profitability for the corporation, increases in revenues are assured.  However, the economic expansion will eventually and inevitably turn into an economic contraction bringing with it decreases in revenues.

 

 

 

MANAGERIAL LESSON:

 

The Superior CEO prepares for the worst during the times of the best.  When the cycle of economic expansion approaches, the CEO must:

 

1)   Get the most out of the expansion cycle:

a.   Realize it is Heaven sent – there are no geniuses in a bull market.

b.   Be determined and persevering in making the best of these Heaven sent times.

c.    Hire the best employees.

d.   Be condescending towards his employees:

·   Give them free reign to do their work.

·   Be splendid with the rewards for meritorious achievements.

e.   Work very hard to make the most of this 7 fat cows period.

f.    Keep in mind at all times the boom times will be followed by the bust times.

 

2)   Prepare the corporation for the inevitable “approaching” future economic recession. 

 

All cycles, including the economic ones, consist of expansions and contractions, with ups and downs following each other in periods of sevens.  That is why, the I Ching warns the CEO to be careful because after the seventh period there will be a downturn in the economic cycle.  The CEO, who prepares during the seven fat cows’ period has nothing to fear during the seven thin cows’ period.

 

The I Ching says: “If we meet evil before it becomes reality-before it has even begun to stir-we can master it”.

 

Here is beauty and wisdom from the I Ching to the CEO:

 

THE IMAGE

 

The earth above the lake: The image of APPROACH.

Thus the superior man is inexhaustible

§  In his will to teach, And (without limits)

§  In his tolerance and protection of the people.

 

The earth borders upon the lake from above

§  This symbolizes the

o   approach and

o   condescension of

§  the man of higher position to

o   those beneath him. 

 

§  The two parts of the image indicate what his

attitude toward these people will be. 

o   Just as the lake is inexhaustible in depth,

§  so the sage is inexhaustible in his readiness to teach mankind, and

o   just as the earth is boundlessly wide, sustaining and caring for all creatures on it,

§  so the sage sustains and cares for all people and excludes no part of humanity.

 

 

 

INVESTMENT ADVICE:

 

In general terms, this is the Hexagram of Larry Ellison of Oracle accumulating wealth during the boom to be able to buy out those corporations that will not make it during the “Approaching” crash.

 

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

 

By itself (no lines) the Hexagram is positive in the beginning but warns the CEO of the future difficulties when the counter cycle begins.

 

APPROACH has supreme success. 

Perseverance furthers.

When the eighth month comes,

There will be misfortune.

 

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

 

The lines are very favorable since four out of the six lines point to Good Fortune.

 

The following cases are those of corporations under the Approach Time-Space.

 

·        Citrix Systems, Inc. CTXS under CEO Mark B. Templeton

·        Motorola Mobility Holdings Inc. MMI under CEO Sanjay K. Jha

 

 

THE LINES

 

 

 

NINE IN THE FIRST PLACE

 

Managerial Issue:         The CEO – managing the “approaching” success and the “approaching” failure - dealing with the newly arrived economic expansion.

 

Managerial Lesson: Be determined. 

 

Managerial Warning: At the first stage of the Approach Time-Space, the CEO must:

§  Not let himself be carried away by the current of the time;

§  Adhere perseveringly to what is right.

 

When the times of economic expansion arrive, many will advise the CEO to follow the latest trends; to take the corporation in directions it has never gone before. 

 

Managerial Advice:       The Superior CEO, when the economic expansion begins, meets it head on and firmly holds on to his managerial principles.  He refuses to be tempted to follow any of the latest trends not matter how profitable they may seem, but rather stays the course and keeps doing what has made the corporation successful.  The Superior CEO knows that only then will he be able to succeed without any regrets.

 

Investment Advice: Invest. 

 

 

 

NINE IN THE SECOND PLACE

 

Managerial Issue:         The CEO – managing the “approaching” success and the “approaching” failure - preparing for the recession as part of the economic cycles.

 

Managerial Lesson: Be prepared. 

 

Managerial Warning: At the second stage of the Approach Time-Space, the I Ching describes a talented CEO who knows how to recognize the opportunities of the economic expansion and goes on to meet the expansion to make the most of it by his own initiative.  However, he also prepares for the coming recession, without allowing it to take him by surprise.  This means both prosperity and security.

 

Managerial Advice: The Superior CEO:

·        Knows that nothing lasts forever, that life is cyclical, and that expansion follows contraction. 

·        Knows the law of economic cycles therefore he accepts that both the economic expansion as well as the economic contraction are Heaven sent and has the strength and consistency to make the most of them.  He has no cause for concern in knowing that the law of cycles is inevitable. 

·        Is always prepared and follows the I Ching’s advice:  A CEO “need not be confused by this universal law of fate.  Everything serves to further.  Therefore he will travel the paths of life swiftly, honestly, and valiantly”.

Investment Advice: Invest. 

 

 

 

SIX IN THE THIRD PLACE

 

Managerial Issue:         The CEO – managing the “approaching” success and the “approaching” failure - in danger of losing his humility as a result of his success.

 

Managerial Lesson: Be humble. 

 

Managerial Warning: At the third stage of the Approach Time-Space, a CEO, who has gotten meritorious recognition for making the most out of the economic cycle, runs the risk of losing his humility and thereby betraying his principles and lowering his self-imposed standards of excellence.  He might be tempted to make deals with the wrong people.

 

Managerial Advice: The Superior CEO:

·        Maintains a vigilant attitude throughout the time of success, and 

·        Is courageous enough to feel to the utmost the:

o   Full weight of his errors,

o   Responsibility of his high position.

 

A The Superior CEO is always open to feel the pain caused by his errors so as to overcome them and transcend.

 

Fortunately, in this case, the CEO manages to correct his attitude in time because he has become aware of the nature of his error. 

 

Investment Advice: Do not invest.

 

 

 

SIX IN THE FOURTH PLACE

 

Managerial Issue:         The CEO – managing the “approaching” success and the “approaching” failure -searching for talented executives/employees who will make the most out of the cycle of economic expansion.

 

Managerial Lesson:  Be unprejudiced. 

 

Managerial Warning: At the fourth stage of the Approach Time-Space, the CEO must look for talented people outside the corporation should he find none within the corporation. 

 

Managerial Advice: The Superior CEO:

Following such advice, the Superior CEO will be able to draw capable employees into the corporation.  This will surely lead to success.

 

Investment Advice: Invest.

 

 

 

SIX IN THE FIFTH PLACE

 

Managerial Issue:         The CEO – managing the “approaching” success and the “approaching” failure - bringing in the best talent and delegating authority.

 

Managerial Lesson:  Be trusting. 

 

Managerial Warning: At the fifth stage of the Approach Time-Space, the CEO must have the wisdom to attract to himself employees who are experts in their own fields.

 

Managerial Advice: The Superior CEO:

§  Chooses only executives of talent/merit.

§  Gives them his trust and authority. 

§  Allows them to do their job and gets out of the way. 

 

A CEO knows how to delegate responsibilities and authority and to keep himself on the sidelines so that the talented managers he chose can successfully carry out their mission.

 

“Only through such self-restraint will he find the experts needed to satisfy all of his requirements”

 

Investment Advice: Invest. 

 

 

 

SIX IN THE SIXTH PLACE

 

Managerial Issue: The CEO – managing the “approaching” success and the “approaching” failure - searching for a capable executive among retired executives as well as from outside the corporation.

 

Managerial Lesson:  Be open. 

 

Managerial Warning: At the sixth stage of the Approach Time-Space, the CEO should look for men of knowledge and talent everywhere.  In this particular case, he should look among retired personnel. 

 

Managerial Advice: The CEO should honor such men by inviting them to participate in the decision making process.  Such acquisition would deepen the knowledge of the corporation by allowing the younger executives to learn from them.  This attitude from the CEO can only bring success to the corporation and a good reputation to the retired executives.

 

Investment Advice: Invest.

 

MANAGERIAL CASES

 

 

 

Citrix Systems, Inc. CTXS under CEO Mark B. Templeton

 

 

Mark B. Templeton’s performance:      ROI=         159.53%,             Annualized Return:         9.88%

SPY performance                      ROI=    2.39%,                    Annualized Return: 0.23%        

 

Mark B. Templeton’s has been CO of Citrix Systems since June 2001.  Since then, his performance has been much superior to the SPY’s. 

 

Because he has been CEO for over a decade, we asked the Oracle once again about his future performance. His Time Space is the Approach which points to Supreme Success.  Because there are no moving lines, there is no moving Hexagram and therefore the Judgment is the focusing point.

 

 

Points the investor should consider:

 

 

1)  THE HEXAGRAM

 

HEXAGRAM 19 – Lin - Approach

 

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

 

 

THE JUDGMENT

 

APPROACH has supreme success. 

Perseverance furthers.

When the eighth month comes,

There will be misfortune.

 

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

 

 

2)  THE ADVICE

 

The earth above the lake: The image of APPROACH.

Thus the superior man is inexhaustible

In his will to teach,

And without limits

In his tolerance and protection of the people.

 

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

 

 

3)  THE LINES:

 

There are no moving lines

 

 

4)  THE MOVING HEXAGRAM

 

There is no moving hexagram because there are no moving lines.  The focus is on the Judgment.

 

 

 

 

Motorola Mobility Holdings Inc. MMI under CEO Sanjay K. Jha

 

 

Sanjay Jha’s Performance:                 ROI=         44.20%       Annualized Return: 74.89%

SPY Performance                      ROI= (4.02%)          Annualized Return: (6.10%)    

 

Sanjay Jha became CEO of Motorola Mobility in June 2010.  Since then, his performance has been much better than the SPY’s.  He properly “Approached” Google for a merger of both companies for a deal worth $12.5 billion at $40 a share.  Managing such merger in such a short period of time is indeed Good Fortune as the sixth line indicates.  Indeed, he has shown wisdom:

§  His wisdom consists both in

o   selecting the right people and in

o   allowing those chosen to have a free hand without interference from him. 

 

 

Points the investor should consider:

 

 

1)  THE HEXAGRAM

 

(Same as Above).

 

 

2)  THE ADVICE

 

(Same as Above).

 

 

3)  THE LINES:

 

Six in the fifth place means:

Wise approach.

This is right for a great prince.

Good fortune.

 

§  A prince, or anyone in a leading position, must have the wisdom to attract to himself people of ability who are expert in directing affairs. 

§  His wisdom consists both in

o   selecting the right people and in

o   allowing those chosen to have a free hand without interference from him. 

§  For only through such self-restraint will he find the experts needed to satisfy all of his requirements.

 

 

4)  THE MOVING HEXAGRAM

 

HEXAGRAM 60 – Chieh - Limitation

 

A lake occupies a limited space.  When more water comes into it, it overflows.  Therefore limits must be set for the water. The image shows water below and water above, with the firmament between them as a limit.

 

The Chinese word for limitation really denotes the joints that divide a bamboo stalk.  In relation to ordinary life it means the thrift that sets fixed limits upon expenditures.  In relation to the moral sphere it means the fixed limits that the superior man sets upon his actions - the limits of loyalty and disinterestedness.

 

 

THE JUDGMENT

 

LIMITATION. 

Success. 

Galling limitation must not be persevered in.

 

Limitations are troublesome, but they are effective.  If we live economically in normal times, we are prepared for times of want.  To be sparing saves us from humiliation.  Limitations are also indispensable in the regulation of world conditions.  In nature there are fixed limits for summer and winter, day and night, and these limits give the year its meaning.  In the same way, economy, by setting fixed limits upon expenditures, acts to preserve property and prevent injury to the people.

 

But in limitation we must observe due measure. If a man should seek to impose galling limitations upon his own nature, it would be injurious.  And if he should go too far in imposing limitations on others, they would rebel.  Therefore it is necessary to set limits even upon limitations

 

 

THE IMAGE

 

Water over lake: the image of LIMITATION.

Thus the superior man 

Creates number and measure,

And examines the nature of virtue and correct conduct.

 

A lake is something limited.  Water is inexhaustible.  A lake can contain only a definite amount of the infinite quantity of water; this is its peculiarity.  In human life too the individual achieves significance through discrimination and the setting of limits.  Therefore what concerns us here is the problem of clearly defining these discriminations, which are, so to speak, the backbone of morality.  Unlimited possibilities are not suited to man; if they existed, his life would only dissolve in the boundless.  To become strong, a man's life needs the limitations ordained by duty and voluntarily accepted.  The individual attains significance as a free spirit only by surrounding himself with these limitations and by determining for himself what his duty is.