Wu Xiaobo: The Three Principles of Old Money

The “Three Principles of Old Money” were proposed by Wu Xiaobo in “Wu Xiaobo’s Trend Theory,” focusing on wealth management strategies for middle-aged and elderly individuals. The core ideas are prudence first, long-termism, and value investing.
These three principles aim to help middle-aged and elderly people shift from pursuing high returns to emphasizing steady wealth growth and risk control, ensuring asset safety and achieving the goal of “making money grow old.”

1. Prudence First
   Adjust the return target from “highest” to “most stable,” aiming for an average annual return of 5%-6%. Prioritize low-risk products such as large bank fixed deposits, quality bonds, and dividend-paying financial products to ensure principal safety and avoid high-risk investments.
2. Long-termism
   Adopt a long-term investment perspective, unaffected by short-term market fluctuations. Achieve continuous wealth growth through compound interest over time, such as allocating funds to index funds and quality blue-chip stocks, avoiding frequent trading and chasing short-term gains.
3. Value Investing
   Invest only in assets with genuine value that can generate sustainable cash flow, such as high-quality company stocks, prime real estate, or stable industries. Avoid chasing hot trends or hype concepts, focusing on the intrinsic value and long-term profitability of assets.
   Additionally, Wu Xiaobo proposed specific measures for the “Old Money Strategy,” including:

· Keeping risk-related investments (such as stocks and futures) within 20% of total assets.

· Revising insurance and trust arrangements every three years, entrusting professional managers with handling affairs.

· Adhering to the principle of “no unfamiliar investments, no investments with acquaintances,” strictly controlling investment risks.
This strategy emphasizes that wealth management for middle-aged and elderly individuals should focus on “defensive wealth accumulation” rather than “offensive profit-making,” aiming to provide stable and continuous financial security for later life.