Old money families and individuals prefer industries that align with their values of stability. They appreciate longevity and generational wealth preservation. Their investment choices often show a preference for tangible, proven assets over speculative or trendy ventures. While preferences can vary based on personal legacy or geographic influence, here are the industries typically favored by old money for investment:
1. Real Estate
- Why: The ultimate “hard asset,” real estate offers durability, appreciation over time, and passive income. Old money loves property—think sprawling estates, prime urban buildings, or farmland.
- Focus: High-value residential properties in prestigious areas (e.g., Mayfair in London, Upper East Side in NYC), commercial real estate like office towers or luxury retail spaces, and agricultural land for both profit and heritage.
- Mindset: It’s about owning something physical that can be passed down, often tied to social status or family history.
2. Banking and Finance
- Why: Old money often has roots in finance, with a deep understanding of how money grows through conservative, calculated moves.
- Focus: Private equity, hedge funds (especially low-risk ones), or stakes in established banks and financial institutions. They also hold bonds or blue-chip stocks with consistent dividends.
- Mindset: They control capital flow. They prefer institutions with a long track record, like JPMorgan Chase or Goldman Sachs. These preferences mirror their own lineage.
3. Luxury Goods and Brands
- Why: These industries cater to their lifestyle and social circles, offering both profit and prestige.
- Focus: Investments in heritage brands like LVMH (Louis Vuitton, Moët, etc.), Hermès, or Rolex. They might also back artisanal or niche luxury startups with staying power.
- Mindset: It’s a synergy of personal taste and market resilience—luxury tends to weather economic downturns better than mass-market goods.
4. Energy (Traditional)
- Why: Historically, old money fortunes were built on oil, gas, or coal, and many still see traditional energy as a reliable cash cow.
- Focus: Stakes in companies like ExxonMobil or BP, or ownership of mineral rights and land leases.
- Mindset: Proven returns and tangible resources outweigh the volatility of newer green energy ventures, though some are slowly diversifying into renewables for optics and future-proofing.
5. Agriculture and Forestry
- Why: Land-based investments double as both wealth preservation and a nod to aristocratic roots—think hunting estates or timber forests.
- Focus: Large-scale farms (vineyards in Bordeaux, cattle ranches in Texas), timberland, or agribusiness firms supplying luxury food markets.
- Mindset: It’s practical and prestigious, with steady returns from commodities like wine, beef, or lumber.
6. Art and Collectibles
- Why: Beyond profit, these are status symbols and a way to diversify beyond traditional markets.
- Focus: Old masters paintings, rare jewelry, vintage cars, or first-edition books. Auction houses like Sotheby’s or Christie’s are familiar territory.
- Mindset: It’s less about quick flips and more about holding value over decades, often tied to family legacy or cultural patronage.
7. Infrastructure and Utilities
- Why: These are the backbone of society—stable, regulated, and nearly recession-proof.
- Focus: Water companies, railroads, toll roads, or energy grids. Think investments in firms like National Grid or Union Pacific.
- Mindset: Slow, steady growth with minimal risk fits their aversion to volatility.
What They Avoid
Old money typically steers clear of high-risk tech startups, cryptocurrencies, or anything too speculative. They’re not chasing unicorns—they’re building dynasties. That said, some younger heirs dip into biotech or sustainable energy, blending tradition with modern relevance.
The Core Principle
The preference leans toward industries with historical resilience, tangible outputs, and a sense of control. It’s not about chasing the next big thing. It’s about fortifying what they already have. This is wealth that endures like a well-tailored coat or a centuries-old estate. That’s the old money way.
By Isaac S. Miyim