HEXAGRAM 61: ORIGINAL, INTERPRETATION AND CASES

HEXAGRAM 61 - Chung Fu - Inner Truth

Above SUN THE GENTLE, WIND

Below TUI THE JOYOUS, LAKE

The wind

· blows over the lake and

· stirs the surface of the water.

Thus visible effects of the invisible manifest themselves.

The hexagram consists of

· firm lines above and below,

while

· it is open in the center.

This indicates

· a heart free of prejudices,

and therefore

· open to truth.

On the other hand,

each of the two trigrams has a firm line in the middle;

this indicates

· the force of inner truth in the influences they represent.

The attributes of the two trigrams are:

· above, gentleness, forbearance toward inferiors;

· below, Joyousness in obeying superiors.

Such conditions

· create the basis of a mutual confidence

that

· makes achievements possible.

The character fu ("truth") is actually the picture of

a bird's foot over a fledgling.

It suggests the idea of brooding.

An egg is hollow.

The light-giving power must work to quicken it from outside,

but

there must be a germ of life within,

if life is to be awakened.

Far-reaching speculations can be linked with these ideas.

THE JUDGMENT

INNER TRUTH. Pigs and fishes.

Good fortune.

It furthers one to cross the great Water.

Perseverance furthers.

Pigs and fishes are

· the least intelligent of all animals

· and therefore

· the most difficult to influence.

The force of inner truth must grow great indeed

before its influence can extend to such creatures.

In dealing with persons

· as intractable and

· as difficult to influence

· as a pig or a fish,

the whole secret of success depends

· on finding the right way of approach.

One must first

· rid oneself of all prejudice and, so to speak,

· let the psyche of the other person act on one without restraint.

Then

one will

· establish contact with him,

· understand and gain power over him.

When

a door has thus been opened,

the force of one's personality will influence him.

If in this way

· one finds no obstacles insurmountable,

· one

o can undertake even the most dangerous things,

such as crossing the great water, and

o succeed.

But

it is important to understand

upon what the force of inner truth depends.

This force is not identical with

· simple intimacy or

· a secret bond.

Close ties may exist also among thieves;

it is true that such a bond acts as a force

· but, since it is not invincible,

· it does not bring good fortune.

All association on the basis of common interests

holds only up to a certain point.

Where the community of interest ceases,

· the holding together ceases also, and

· the closest friendship often changes into hate.

Only when

· the bond is based on what is right, on steadfastness,

· will it remain so firm that it triumphs over everything.

THE IMAGE

Wind over lake: the image of INNER TRUTH.

Thus

the superior man

discusses criminal cases

In order to delay executions.

Wind stirs water by penetrating it.

Thus

the superior man,

when

obliged to judge the mistakes of men,

· tries to penetrate their minds with understanding,

· in order to gain a sympathetic appreciation of the circumstances.

In ancient China,

the entire administration of justice was guided by this principle.

A deep understanding that knows how to pardon

was considered the highest form of justice.

This system was not without success,

for its aim was to make so strong a moral impression

that there was no reason to fear abuse of such mildness.

For it sprang not

· from weakness

but

· from a superior clarity.

THE LINES

Nine at the beginning means:

Being prepared brings good fortune.

If there are secret designs,

it is disquieting.

The force of inner truth depends chiefly on

· inner stability and

· preparedness.

From this state of mind springs

the correct attitude toward the outer world.

But if

a man

· should try to cultivate secret relationships of a special sort,

· it would deprive him of his inner independence.

· The more reliance he places on the support of others,

· the more uneasy and anxious he will become

as to whether

· these secret ties are really tenable.

In this way

· inner peace and

· the force of inner truth

are lost.

Nine in the second place means:

A crane calling in the shade.

Its young answer it.

· I have a good goblet.

· I will share it with you.

This refers to

the involuntary influence of a man's inner being

upon persons of kindred spirit.

The crane need not show itself on a high hill.

It may be quite hidden when it sounds its call;

yet its young

· will bear its note,

· will recognize it and give answer.

Where

· there is a joyous mood,

· there a comrade will appear to share a glass of wine.

This is the echo awakened in men through

spiritual attraction.

· Whenever a feeling is voiced with truth and frankness,

· whenever a deed is the clear expression of sentiment,

a mysterious and far-reaching influence is exerted.

· At first it acts on those who are inwardly receptive.

But

· the circle grows larger and larger.

The root of all influence lies in one's own inner being:

· given true and vigorous expression in

o word and

o deed,

· its effect is great.

The effect is but

· the reflection of something that emanates from one's own heart.

Any deliberate intention of an effect

would only destroy the possibility of producing it.

Confucius says about this line:

The superior man abides in his room.

· If his words are well spoken,

o he meets with assent at a distance of more than a thousand miles.

o How much more then from nearby!

· If the superior man abides in his room and his words are not well spoken,

o he meets with contradiction at a distance of more than a thousand miles.

o How much more then from nearby!

· Words

o go forth from one's own person and

o exert their influence on men.

· Deeds

o are born close at hand and

o become visible far away.

· Words and deeds are the hinge and bowspring of the superior man.

· As hinge and bowspring move,

· they bring

o honor or

o disgrace.

· Through words and deeds the superior man moves

o heaven and

o earth.

· Must one not, then, be cautious?

Six in the third place means:

He finds a comrade.

· Now he beats the drum,

· now he stops.

· Now he sobs,

· now he sings.

Here

the source of a man's strength lies

· not in himself

· but in his relation to other people.

No matter how close to them he may be,

· if his center of gravity depends on them,

· he is inevitably tossed to and fro between joy and sorrow.

Rejoicing to high heaven, then sad unto death –

this is the fate of those who depend upon

an inner accord with other persons whom they love.

Here

we have only the statement of the law that this is so.

Whether this condition is felt to be an affliction or the supreme happiness of love,

is left to the subjective verdict of the person concerned.

Six in the fourth place means:

The moon nearly at the full.

The team horse goes astray.

No blame.

To intensify the power of inner truth,

· a man must always turn to his superior, from whom

· he can receive enlightenment

as the moon receives light from the sun.

However,

· this requires certain humility,

· like that of the moon when it is not yet quite full.

At the moment when

· the moon becomes full and stands directly opposite the sun,

· it begins to wane.

Just as on the one hand

· we must be humble and reverent

· when face to face with the source of enlightenment,

so likewise

· must we on the other renounce factionalism among men.

Only by

· pursuing one's course like a horse

that goes straight ahead without looking sidewise at its mate,

· can one retain the inner freedom that helps one onward.

Nine in the fifth place means:

He possesses truth, which links together.

No blame.

This describes the ruler who

holds all elements together

by the power of his personality.

Only when

· the strength of his character is so ample that

he can influence all who are subject to him,

· is he as he needs to be.

· The power of suggestion must emanate from the ruler.

· It will

o firmly knit together and

o unite all his adherents.

Without this central force,

all external unity

· is only deception and

· breaks down at the decisive moment.

Nine at the top means:

Cockcrow penetrating to heaven.

Perseverance brings misfortune.

· The cock is dependable.

· It crows at dawn.

But

· it cannot itself fly to heaven.

· It just crows.

· A man may count on mere words to awaken faith.

· This may succeed now

but if persisted in,

· it will have bad consequences.

61 INNER TRUTH

MANAGERIAL ISSUE:

The CEO – managing with his Inner Truth (strength and vision) to improve the corporation.

Hexagram 61 represents a Time-Space where the CEO must focus on developing his inner strength to manage superiors and subordinates. The CEO must free his heart of prejudices so that he can be open to the truth. Only a CEO, who has the inner strength and is sure of his own beliefs as well as of his own vision, is capable of listening to other men's ideas without fearing losing his own ideas; such a CEO, is an open minded man who will prejudge nothing, and who will respect other men’s ideas as much as his own.

MANAGERIAL LESSON:

The Superior CEO:

1) Practices the same proper behavior towards the Board of Directors as well as towards the employees- (“as above, so below”, or “on Earth as it is in Heaven”). On this point, the Superior CEO shows:

a) The proper behavior towards his superiors, including shareholders and the Board of Directors - he is loyal, willing to execute their plans at all times, and shows a pleasant disposition as well as a positive attitude towards them. And

b) The proper behavior towards the employees - he is generous with rewards and willing to forgive mistakes because he knows the smart executives grow with their mistakes.

The best CEOs have these traits. However, there are so many CEOs who easily come to mind for showing adulation for the Board of Directors, contempt for the shareholders and meanness towards the employees.

2) Stimulates corporate talent. There are two important corporate elements to this concept:

a) The corporation must have something of value to add to its customers such as a brilliant idea in the form of a product or service, as well as the talented people who generate the ideas. And

b) The CEO must have the ability to stimulate such talent.

3) Creates synergy. The CEO can carry a corporation on his sheer talent up to a point. But a CEO who works with talented people can create so much synergy that he can distance his corporation much beyond any competitor’s reach.

4) Communicates - the CEO’s success will depend upon the manner in which he reaches out to the personnel.

a) First, the CEO must be very strong within. Holding the inner vision will provide the strength.

b) Second, he must open up all communication channels to his personnel so that his personnel will, in turn, open up to him - today is much easier thanks to the e-mail, twitter, Facebook and the Internet in general. He should do so provided his attitude is sincere and will not prejudge or discriminate against anyone. Once the CEO opens up his mind, his personnel will also open up their minds and then the CEO can cross over through this communication channel to understand, to influence and to motivate the personnel into doing practically anything not matter how challenging and not matter how risky. The CEO and the employees can be compared to two computers opening up their communication channels; the one with the master program (CEO) will lead the other one to perform the tasks.

5) Provides the right cause - The nature of the linking of the minds - that of the CEO and that of the employees - must be tied to a good cause. The Superior CEO knows that:

a) A CEO who inspires others to create, to manufacture and to sell a product harmful to others, is basing his inspiration on evil, and evil cannot last. In the end the employees will realize the evil nature of their work and will turn on their CEO. This is the case of companies such as Phillip Morris. A long time ago they realized the evil nature of their product and tried to disguise it by diversifying into other products such as Miller Beer, Kraft and Oscar Meyer instead of shutting down the tobacco plants. Phillip Morris was, is and will continue to be an evil company whether it hides behind a conglomerate or whether it returns to its single form after spinning off the other corporations.

b) No self-respecting worker would want to elaborate a product like cigarettes, which are so harmful for the consumers. On the other hand, everyone would be very proud to work for a company which mission is to serve and satisfy the client - such as GE when Welch had the Mandate of Heaven. The bonding between Jack Welch and his employees was not so much based on fear as some have said, but on an almost religious fervor in their belief of the righteousness of their mission. Only a CEO who has the Mandate of Heaven can inspire such attitude - workers will work day and night, and go the extra mile when they are convinced of the righteousness of their mission.

6) Understands the employees’ mistakes. Naturally, CEOs would prefer to deal with successes rather than failures. However, CEOs know that all employees make mistakes, and that correcting mistakes is both an integral part of inspiring others as well as a fundamental part of maintaining corporate order. The CEO, who applies the same mind-picking abilities that have made him successful in inspiring others, will easily understand the reasons why the employee made the mistake. Understanding usually leads to forgiveness and that is one of the secrets of success. CEOs are very powerful. They can destroy employees' career very easily. The CEOs know it and all smart employees know it also. Thus, when a CEO understands and forgives an employee's mistake, then the smart employee will correct his mistake faster and with more desire than if he had received the worst punishment.

7) Applies justice and understanding as the basis for inspiring others.

INVESTMENT ADVICE:

For the investor, the Inner Truth represents in general terms an unfavorable Time-Space to invest. Few CEOs have the Inner Truth.

By itself (no lines) the Time-Space points to Good Fortune provided the CEO makes “contact” with the employees and customers.

INNER TRUTH. Pigs and fishes.

Good fortune.

It furthers one to cross the great Water.

Perseverance furthers.

Pigs and fishes are the least intelligent of all animals and therefore the most difficult to influence. The force of inner truth must grow great indeed before its influence can extend to such creatures. In dealing with persons as intractable and as difficult to influence as a pig or a fish, the whole secret of success depends on finding the right way of approach. One must first rid oneself of all prejudice and, so to speak, let the psyche of the other person act on one without restraint. Then one will establish contact with him, understand and gain power over him. When a door has thus been opened, the force of one's personality will influence him. If in this way one finds no obstacles insurmountable, one can undertake even the most dangerous things, such as crossing the great water, and succeed.

But it is important to understand upon what the force of inner truth depends. This force is not identical with simple intimacy or a secret bond. Close ties may exist also among thieves; it is true that such a bond acts as a force but, since it is not invincible, it does not bring good fortune. All association on the basis of common interests holds only up to a certain point. Where the community of interest ceases, the holding together ceases also, and the closest friendship often changes into hate. Only when the bond is based on what is right, on steadfastness, will it remain so firm that it triumphs over everything.

The lines, however, have no good possibilities except for the first line. The rest are negative or extremely negative such as the sixth line.

The following are cases of corporations under the Inner Truth Time-Space:

· Chevron Corp. CVX under CEO John Watson

· Microsoft Corporation MSFT under CEO Steven A. Ballmer

· Mattel Inc. MAT under CEO Robert A. Eckert

(Read at the end of the Hexagram)

THE LINES

NINE IN THE FIRST PLACE

Managerial Issue: The CEO – managing with his Inner Truth (strength and vision) to improve the corporation – in the beginning.

Managerial Lesson: Be independent.

Managerial Warning: At the first stage of the Inner Truth Time-Space, the CEO must find his inner stability and be prepared.

Managerial Advice: The Superior CEO relies on his Inner Truth or vision to properly guide his corporation. Such Inner Truth or conviction or drive should be based on a proper balance between peace of mind and a constant readiness at all times to face any event. He maintains his Inner Truth by relying on himself, by understanding those who surround him, and by keeping his independence from any individual or from any group. The Superior CEO knows that should he rely on others for the vision, his conviction might waver and he will be lost.

Investment advice: Do not invest. Look for a better alternative

NINE IN THE SECOND PLACE

Managerial Issue: The CEO – managing with his Inner Truth (strength and vision) to improve the corporation – inspiring the employees with his Inner Truth.

Managerial Lesson: Be inspirational.

Managerial Warning: At the second stage of the Inner Truth Time-Space, the CEO risks speaking thoughtlessly or foolishly.

Managerial Advice: The Superior CEO must follow the sequence:

1) Speak with conviction and from the heart to inspire others in accomplishing great deeds.

2) Move others with his truth because the truth will reach the hearts of all employees with the same strength as it vibrates in the CEO’s heart.

3) Reinforce this common vibration which will unify all corporate employees in a single spiritual bond. And

4) Amplify this spiritual bond so that it will expand like a circle in a pond bringing more individuals who would like to be a part of the vision to join the corporation and follow its CEO.

This is the classic line of legendary CEOs like Mr. Hewlett or Mr. Packard whose conviction was so strong they were responsible for the gathering of the top talent of many generations. This is also the line of Walton and many others.

Investment advice: Do not invest

SIX IN THE THIRD PLACE

Managerial Issue: The CEO – managing with his Inner Truth (strength and vision) to improve the corporation – relying on others’ Inner Truth rather than his own.

Managerial Lesson: Be self-assured.

Managerial Warning: At the third stage of the Inner Truth Time-Space, the CEO relies on the conviction of others to get things accomplished.

Managerial Advice: The Superior CEO knows that to rely on others’ Inner Truth rather than on his own is to expose himself to the will of others. Such exposure will do away with his sense of balance because he will be exposed to the peaks and valleys of emotions. He will either feel the joy or feel the pain of someone else’s triumph or failure.

Even though the I Ching gives no final verdict to this condition, as it seems to be relative, it is not the best managerial option.

Investment advice: Do not invest.

SIX IN THE FOURTH PLACE

Managerial Issue: The CEO – managing with his Inner Truth (strength and vision) to improve the corporation – looking for Inner Truth from his superior.

Managerial Lesson: Be humble.

Managerial Warning: At the fourth stage of the Inner Truth Time-Space, the CEO must look for a “superior” to enlighten him.

Managerial Advice: The Superior CEO knows that:

· Even if he is a brilliant CEO, he still will require once in a while a superior mind to help him clarify his goals.

· Such approach demands humility because it is hard for a brilliant CEO to accept someone else’s advice.

Here there is an apparent reference to the I Ching itself as that direct advisor that could help him clarify his ideas. The I Ching recommends the CEO should:

· Approach the I Ching with the humility and reverence such a source of wisdom deserves, and

· Be prepared to give up that which divides mankind and focus on carrying out the I Ching’s direct advice.

Investment advice: Do not invest

NINE IN THE FIFTH PLACE

Managerial Issue: The CEO – managing with his Inner Truth (strength and vision) to improve the corporation – depending on his personality for his Inner Truth.

Managerial Lesson: Be passionate.

Managerial Warning: At the fifth stage of the Inner Truth Time-Space, the CEO holds all elements together by the power of his personality.

Managerial Advice: The Superior CEO manages his corporation by the sheer strength of his personality. He holds the power of conviction to influence his followers. He knows such power of conviction is crucial to successfully keep together the corporation to reach its goals.

Investment advice: Do not invest

NINE IN THE SIXTH PLACE

Managerial Issue: The CEO – managing with his Inner Truth (strength and vision) to improve the corporation – when his Inner Truth is superficial.

Managerial Lesson: Be honest.

Managerial Warning: At the sixth stage of the Inner Truth Time-Space, the CEO succeeds temporarily using mere words to arouse the corporate spirit.

Managerial Advice: The Superior CEO knows when:

· His Inner Truth is not for real,

· It is only superficial,

· His message is empty and will not reach the employees’ heart.

· It does not come from within because he holds no Inner Truth.

Even if he is an excellent communicator, nothing can be achieved if he lacks a real message. Charm can only carry a CEO so far, in the end the CEO has to deliver.

Investment advice: Do not invest

MANAGERIAL CASES

Chevron Corp. CVX under CEO John Watson

John Watson’s Performance: ROI= 29.85% Annualized Return= 15.70%

SPY’s Performance: ROI= 7.07% Annualized Return= 3.88%

John Watson became CEO of Chevron in January of 2010.

Since then, he has been able to outperform the SPY thanks both to his skills as well as to the large demand for raw materials.

Points the investor should consider:

1) THE HEXAGRAM

HEXAGRAM 61 - Chung Fu - Inner Truth

The wind blows over the lake and stirs the surface of the water. Thus visible effects of the invisible manifest themselves. The hexagram consists of firm lines above and below, while it is open in the center. This indicates a heart free of prejudices, and therefore open to truth. On the other hand, each of the two trigrams has a firm line in the middle; this indicates the force of inner truth in the influences they represent.

The attributes of the two trigrams are: above, gentleness, forbearance toward inferiors; below, Joyousness in obeying superiors. Such conditions create the basis of a mutual confidence that makes achievements possible.

The character Fu ("truth") is actually the picture of a bird's foot over a fledgling. It suggests the idea of brooding. An egg is hollow. The light-giving power must work to quicken it from outside, but there must be a germ of life within, if life is to be awakened. Far-reaching speculations can be linked with these ideas.

THE JUDGMENT

INNER TRUTH. Pigs and fishes.

Good fortune.

It furthers one to cross the great Water.

Perseverance furthers.

2) THE ADVICE

Wind over lake: the image of INNER TRUTH.

Thus the superior man discusses criminal cases

In order to delay executions.

Wind stirs water by penetrating it. Thus the superior man, when obliged to judge the mistakes of men, tries to penetrate their minds with understanding, in order to gain a sympathetic appreciation of the circumstances. In ancient China, the entire administration of justice was guided by this principle. A deep understanding that knows how to pardon was considered the highest form of justice. This system was not without success, for its aim was to make so strong a moral impression that there was no reason to fear abuse of such mildness. For it sprang not from weakness but from a superior clarity.

3) THE LINES:

Nine in the fifth place means:

He possesses truth, which links together.

No blame.

This describes the ruler who holds all elements together by the power of his personality. Only when the strength of his character is so ample that he can influence all who are subject to him, is he as he needs to be. The power of suggestion must emanate from the ruler. It will firmly knit together and unite all his adherents. Without this central force, all external unity is only deception and breaks down at the decisive moment.

4) THE MOVING HEXAGRAM

HEXAGRAM 41 – Sun - Decrease

This hexagram represents a decrease of the lower trigram in favor of the upper, because the third line, originally strong, has moved up to the top, and the top line, originally weak, has replaced it. 1 What is below is decreased to the benefit of what is above. This is out-and-out decrease. If the foundations of a building are decreased in strength and the upper walls are strengthened, the whole structure loses its stability. Likewise, a decrease in the prosperity of the people in favor of the government is out-and-out decrease. And the entire theme of the hexagram is directed to showing how this shift of wealth can take place without causing the sources of wealth in the nation and its lower classes to fail.

THE JUDGMENT

DECREASE combined with sincerity

Brings about supreme good fortune

Without blame.

One may be persevering in this.

It furthers one to undertake something.

How is this to be carried out?

One may use two small bowls for the sacrifice.

Decrease does not under all circumstances mean something bad. Increase and decrease come in their own time. What matters here is to understand the time and not to try to cover up poverty with empty pretense. If a time of scanty resource brings out an inner truth, one must not feel ashamed of simplicity. For simplicity is then the very thing needed to provide inner strength for further undertakings. Indeed, there need be no concern if the outward beauty of the civilization, even the elaboration of religious forms, should have to suffer because of simplicity. One must draw on the strength of the inner attitude to compensate for what is lacking in externals; then the power of the content makes up for the simplicity of form. There is no need of presenting false appearances to God. Even with slender means, the sentiment of the heart can be expressed. 2

THE IMAGE

At the foot of the mountain, the lake: The image of DECREASE.

Thus the superior man controls his anger

And restrains his instincts.

The lake at the foot of the mountain evaporates. In this way it decreases to the benefit of the mountain, which is enriched by its moisture. The mountain stands as the symbol of a stubborn strength that can harden into anger. The lake is the symbol of unchecked gaiety that can develop into passionate drives at the expense of the life forces. Therefore decrease is necessary; anger must be decreased by keeping still, the instincts must be curbed by restriction. By this decrease of the lower powers of the psyche, the higher aspects of the soul are enriched.

Microsoft Corporation MSFT under CEO Steve A. Ballmer

Steven A. Ballmer’s Performance: ROI= (51.50%) Annualized Return= (5.94%)

SPY’s Performance: ROI= (16.53%) Annualized Return= (1.52%)

Steven A. Ballmer became CEO of Microsoft in January of 2000.

Since then he has turned in a disastrous performance proving that he should seriously consider resigning.

Because he has been CEO for almost a decade, we asked the Oracle once more about his future. His new hexagram is Inner Truth.

Points the investor should consider:

1) THE HEXAGRAM

(Same as Above).

2) THE ADVICE

(Same as Above).

3) THE LINES:

Nine in the second place means:

A crane calling in the shade.

Its young answer it.

I have a good goblet.

I will share it with you.

This refers to the involuntary influence of a man's inner being upon persons of kindred spirit. The crane need not show itself on a high hill. It may be quite hidden when it sounds its call; yet its young will bear its note, will recognize it and give answer. Where there is a joyous mood, there a comrade will appear to share a glass of wine.

This is the echo awakened in men through spiritual attraction. Whenever a feeling is voiced with truth and frankness, whenever a deed is the clear expression of sentiment, a mysterious and far-reaching influence is exerted. At first it acts on those who are inwardly receptive. But the circle grows larger and larger. The root of all influence lies in one's own inner being: given true and vigorous expression in word and deed, its effect is great. The effect is but the reflection of something that emanates from one's own heart. Any deliberate intention of an effect would only destroy the possibility of producing it.

Confucius says about this line:

The superior man abides in his room. If his words are well spoken, he meets with assent at a distance of more than a thousand miles. How much more then from nearby! If the superior man abides in his room and his words are not well spoken, he meets with contradiction at a distance of more than a thousand miles. How much more then from nearby! Words go forth from one's own person and exert their influence on men. Deeds are born close at hand and become visible far away. Words and deeds are the hinge and bowspring of the superior man. As hinge and bowspring move, they bring honor or disgrace. Through words and deeds the superior man moves heaven and earth. Must one not, then, be cautious?

Six in the fourth place means:

The moon nearly at the full.

The team horse goes astray.

No blame.

To intensify the power of inner truth, a man must always turn to his superior, from whom he can receive enlightenment as the moon receives light from the sun. However, this requires certain humility, like that of the moon when it is not yet quite full. At the moment when the moon becomes full and stands directly opposite the sun, it begins to wane. Just as on the one hand we must be humble and reverent when face to face with the source of enlightenment, so likewise must we on the other renounce factionalism among men. Only by pursuing one's course like a horse that goes straight ahead without looking sidewise at its mate, can one retain the inner freedom that helps one onward.

Nine at the top means:

Cockcrow penetrating to heaven.

Perseverance brings misfortune.

The cock is dependable. It crows at dawn. But it cannot itself fly to heaven. It just crows. A man may count on mere words to awaken faith. This may succeed now but if persisted in, it will have bad consequences.

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.

Mattel Inc. MAT under CEO Robert A. Eckert

Robert A. Eckert’s Performance: ROI= 113.19% Annualized Return= 7.65%

SPY’s Performance: ROI= (15.24%) Annualized Return= (1.43%)

Robert A. Eckert became CEO in May of 2000.

Since then, he has been able to substantially outperform the SPY; however, he did have some difficulties from 2000 to 2009 and he has done very well since 2009 till today.

Because he has been CEO for almost a decade, we asked the Oracle once more about his future. His new hexagram is Inner Truth.

Points the investor should consider:

1) THE HEXAGRAM

(Same as Above).

2) THE ADVICE

(Same as Above).

3) THE LINES:

Nine at the beginning means:

Being prepared brings good fortune.

If there are secret designs, it is disquieting.

The force of inner truth depends chiefly on inner stability and preparedness. From this state of mind springs the correct attitude toward the outer world. But if a man should try to cultivate secret relationships of a special sort, it would deprive him of his inner independence. The more reliance he places on the support of others, the more uneasy and anxious he will become as to whether these secret ties are really tenable. In this way inner peace and the force of inner truth are lost.

4) THE MOVING HEXAGRAM

HEXAGRAM 59 – Huan - Dispersion (Dissolution)

Wind blowing over water disperses it, dissolving it into foam and mist. This suggests that when a man's vital energy is dammed up within him (indicated as a danger by the attribute of the lower trigram), gentleness serves to break up and dissolve the blockage.

THE JUDGMENT

Dispersion,

Success.

The king approaches his temple.

It furthers one to cross the great water.

Perseverance furthers.

The text of this hexagram resembles that of Ts'ui, GATHERING TOGETHER (45). In the latter, the subject is the bringing together of elements that have been separated, as water collects in lakes upon the earth. Here the subject is the dispersing and dissolving of divisive egotism. DISPERSION shows the way, so to speak, that leads to gathering together. This explains the similarity of the two texts.

Religious forces are needed to overcome the egotism that divides men. The common celebration of the great sacrificial feasts and sacred rites, which gave expression simultaneously to the interrelation and social articulation of family and state, was the means employed by the great rulers to unite men. The sacred music and the splendor of the ceremonies aroused a strong tide of emotion that was shared by all hearts in unison, and that awakened a consciousness of the common origin of all creatures. In this way disunity was overcome and rigidity dissolved. A further means to the same end is cooperation in great general undertakings that set a high goal for the will of the people; in the common concentration on this goal, all barriers dissolve, just as, when a boat is crossing a great stream, all hands must unite in a joint task.

But only a man who is himself free of all selfish ulterior considerations, and who perseveres in justice and steadfastness, is capable of so dissolving the hardness of egotism.

THE IMAGE

The wind drives over the water: The image of DISPERSION.

Thus the kings of old sacrificed to the Lord

And built temples.

In the autumn and winter, water begins to freeze into ice. When the warm breezes of spring come, the rigidity is dissolved, and the elements that have been dispersed in ice floes are reunited. It is the same with the minds of the people. Through hardness and selfishness the heart grows rigid, and this rigidity leads to separation from all others. Egotism and cupidity isolate men. Therefore the hearts of men must be seized by a devout emotion. They must be shaken by a religious awe in face of eternity - stirred with an intuition of the One Creator of all living beings, and united through the strong feeling of fellowship experienced in the ritual of divine worship.