To make a sharp distinction between Confucianism and Daoism as two separate schools of thought will cause a certain degree of obscurity. The author hopes to overcome this cultural short-sightedness and examine each’s cultural homogeneity from a more macro and far-reaching perspective through defining the prehistoric culture before the use of Chinese characters as the big tradition, and the prehistoric culture after it as the small tradition. In this way, the Confucianism and Daoism, which emerged in the Spring and Autumn Period, are clearly both classified as parts of the small tradition. Analysis of the remarks and ideas of their respective founders, Confucius and Laozi, reveals a large degree of homogeneity between the two, particularly in the way they understand sages (sage rulers) worship and sacred objects (jade) worship.