A great country is like the sea,
Like a watershed that all rivers flow down toward.
The feminine of the world,
It joins everything together
Overcoming aggression with humility, stillness, and peace.

In this way a great country
Wins over smaller and weaker ones
With respect and appreciation.
Not threatened, smaller countries support and sustain the larger
Winning patronage and protection
Like the feminine drawing in the male.

They both lie low to be on top,
Accomplish by surrendering.

Mediocrity is comforting but cowardly. It can avoid stress but pays by also avoiding success. Fear fools us into mistaking comfort for happiness. By avoiding challenge we only assure our own failure. The great revel in challenge, eschew mediocrity, and excel in the most excellent. They prefer the more difficult, see problems as opportunities, and easily inspire admiration and good will. To be excellent in little, unimportant ways is to be unimportant with little excellence. Much better to pull out the stops and seize the day.

The Tao is the hidden center of all things.
Treasured by the good, it brings refuge to the bad.

Beautiful words can buy honor,
Good deeds can buy respect -
Even the most foolish can claim these.
Basic goodness though has no price and is here for all.
Though people stray far from this path,
It will never abandon them.

Therefore when a leader is empowered,
Don’t bother with material gifts or fine words.
Offer instead stillness and uncontrived awareness.

This is why the Tao is revered now and since ancient times:
When looked for, it appears;
When lost, mistaken, and confused;
It begins again fresh and pure.

We're only as successful as our support, as our tools allow. Skill without the means of using it doesn't go far. Most find choosing and finding physical tools much easier than finding the best associates, partners, assistants, employees. Too often, factors unrelated to skill influence these decisions—for example, history's countless and disastrous examples of nepotism. Some worry that subordinates will outshine them and for this reason choose inferior support. Some make these bad choices from a misguided and inappropriate sense of compassion.

Do what can’t be done by doing things,
Let action be effortless.
Make what can’t be made by making things,
Savor the tasteless.
Treat the small as large,
The few as many.
Repay wrongs with the Power of Goodness.

Work on problems before they become big,
Study the complicated while it’s still obvious.
The biggest challenge starts out easy,
The most renowned projects
Begin small and uncomplicated.

Since taking things too lightly creates big problems
And thinking things too easy makes them difficult,
The wise don’t make much ado about anything,
Don’t take to heart what they can throw over their shoulders,
Don’t believe or like lightly.
By never attempting great ventures,
They accomplish great goals.

Most prefer imitation to invention and in that way secure an inferior place in their profession, in their society, and in history. They choose the easier path of copying and find it easier but look to the world like parrots and unknowingly build a glass ceiling they will never be able to rise above. Those with the courage to take chances and try new ventures and ideas, however, immediately gain advantage and invite fame and recognition. If both first and successful, that success becomes twice as impressive.

It’s easy to guide a peaceful situation,
Easy to stop trouble before it starts,
Easy to break something when still fragile,
Easy to get rid of something when still small,
Easy to get clear before things get complicated and confused.

As a giant tree grows from a small seed,
And a tall building rises from a shovelful of earth,
Our 10,000 mile journeys begin with one step.
But rushing into action fails,
And grasping makes things slip away.

The wise therefore let things take their course and nothing goes wrong,
Don’t hold on and nothing is lost.
Instead of ruining things when on the verge of success,
They mind the end as the beginning,
The journey as the goal.

The wise only want not to want
And care nothing for hard won treasures.
They study what no one else studies
And turn back to the places
Others have gone on from.
They go along with things as they are
Without presuming to act.

Doing harm to yourself in order to please another does not describe true compassion but rather a perverted understanding. True compassion requires intelligence and understanding of the entire situation. Creating pain for ourselves in order to calm or give pleasure to another can help a small segment but harm the whole. Instead, look ahead and avoid problems whenever possible. Unless clearly beneficial, neither give nor receive bad news. Protect your ears from the sick sweetness of flattery, the perverse bitterness of scandal, the depressing entertainment of sensationalist bad news. (cf. #163)

The wise don’t teach people to believe in words
But only to search for the true meaning.
When people are convinced by concepts,
Foolishness abounds.
When leaders are convinced by concepts,
Corruption, confusion, and conflict reign.
When instead they remain unconvinced and open,
Blessings and goodness spread.

Realizing the difference between understanding the words
And understanding the sense
Is a key to the Hidden Power of Goodness.
This power goes deep and reaches far.
It leads all things back to their own true nature.

The thoughtful and perceptive become the most difficult to impress. They quickly see through exaggeration and salespersonship but also have a deep appreciation for the authentic and true. You can train this genuine good taste like education trains the intellect and those trained in this way immediately attract respect. Only goodness satisfies a great mind and even the most skilled scam artists tremble before this kind of perceptive spirit. To know and associate with someone who cultivates this kind of integrity and taste creates great good fortune. You can learn deep lessons leading to great happiness and a meaningful life just by identifying and watching people like this.

By always seeking the most lowly position,
Oceans can welcome and receive all rivers and streams.
In this way the wise, by placing themselves lower than others
Gain the most respect and influence.
They teach and guide by listening.
They lead by following behind.

For these reasons,
When the wise are in charge,
The people don’t feel oppressed.
When the wise are in front,
The people don’t feel blocked.

The world never tires of praising
And appreciating this kind of leader.
Because they don’t struggle or compete,
They have no competition.

In this nod to Machiavelli, Gracian (born 132 later)—or possibly a later editor—contradicts most of his other suggestions and paraphrases this famous sentiment from The Prince with a slightly more Christian softness:
A successful conclusion washes away the negative memories and bad feelings that arise from using unethical methods. If you win, you don't have to explain or justify yourself so winning holds the supreme importance. The goal is the journey. History only records in detail success and failure, not the means. Therefore, sometimes becoming successful requires breaking the rules.

People say that the Tao is great
But not practical, even useless.
Because it’s great it’s improbable, not practical or useful.
What’s probable is conventional and petty.
If it were useful,
It would never have become great.
Because it’s great, it seems like folly.
When truths become solid,
They transform into clichés.

Only 3 qualities are worth treasuring and following closely:
Compassion, moderation, and humility.
From compassion comes bravery,
From moderation comes generosity,
From humility comes authentic leadership.

But bravery without compassion,
Generosity without self-restraint,
Leadership without humility
All lead to disaster.

Compassion wins every battle
And outlasts every attack.
What goodness creates,
Compassion protects.

In this second, not-typical, probably inserted chapter; power and prestige-seeking is again glorified:
Choose a livelihood that will gain you the most praise and fame. Some professions immediately attract esteem while others—although sometimes more important—do not. Prefer the paths that bring the most prestige, that put you closer to the center of celebrity. An honored reputation brings the breath of life.

During golden ages
The best soldiers were never angry,
The best generals were never aggressive.
They overcame enemies without fighting.

The best victors didn’t compete,
The best employers served their employees.
This is the goodness of no struggle, no striving, no gaining ideas;
The best use of ability;
The joining of heaven and earth.

From moment to moment, the most appropriate response changes but most only see what is past or what they hope will occur in the future, not noticing opportunities in the present. Most possibilities slide past us into oblivion because we ignore them or because we are afraid of the risks. Most never find success simply because they don't make the attempt. Often a close friend has a more clear awareness of this kind of achievability than the friend themselves. When giving this kind of advice however, subtlety and reticence become key to communication that inspires without controlling manipulation. Don't say more than necessary and add further bits of confidence-building only if necessary.

The best military experts advise:
Retreat when not strong enough to advance,
Advance when your opponent not strong enough to attack.
March without moving,
Roll up your sleeves without flexing your muscles,
Be strong and powerful without weapons,

Give an attacker no opponent -
Nothing is worse than attacking what yields,
To attack and find no enemy.
Aggression destroys our greatest treasure.
When opponents are evenly matched,
The most compassionate prevails.

Don't let your impulses and strong feelings enslave you to whims and poor judgment. Under the influence of contradictory desires, public opinion, and seemingly certain external opinion; most people unknowingly live their lives controlled by subtle cultural and political forces they not only don't understand but also don't even notice. This creates cognitive dissonance and a damned-if-you do/damned-if-you don't dichotomy between our beliefs and our true selves. Instead, focus on knowing yourself. Self-reflection can become the best school of wisdom.

These teachings are easy to understand,
Easy to practice;
Yet very few understand
Or put them into practice.

These words have an ancient source,
These actions an ancient beginning.
But when this source is unknown,
There can be no real understanding.

Therefore the wise appear simple and ordinary on the outside
While holding a precious treasure concealed within.

Saying "no" risks good will, friendships, and all kinds of relationships. Learning how to do this in a skillful way therefore determines—to a large extent—our success in life. "Yes" and "no" are short words quickly spoken, but, because of their deep and profound consequences, require serious and thoughtful consideration. The arrogant and power-intoxicated tend to maintain "no" as a first response and, as a consequence, lose good will even when they later approve. Instead of creating resentment, a wisdom-inspired "no" can invoke more appreciation than a cursory "yes". It substitutes politeness, charm, and fine words for acquiescent action. Not capricious or abrupt but gilded with positives, this kind of "no" usually evolves slowly and incrementally over time. Never "final", it always leaves room for hope and change.