Core Viewpoint - The article emphasizes the importance of maintaining a valuation anchor in investment decisions, especially in a bullish market, to avoid irrational behavior and ensure a clear investment strategy [1][6]. Group 1: Market Analysis - The current bull market is expected to last at least 18 months, providing a favorable environment for investors in the Hong Kong stock market [1]. - The article discusses the contrasting valuations of companies like Tesla and Huachen China, highlighting Tesla's extreme optimism with a PE ratio of 120 and Huachen China's extreme pessimism with a PE ratio of 3.28 [4]. Group 2: Investment Strategies - The author references Warren Buffett's strategy of selling Apple stocks when the PE ratio exceeded 30, indicating a belief in the risks associated with high valuations [2]. - The article suggests that investors should be cautious about chasing high valuations and should consider when to exit positions, particularly when valuations exceed 40 PE [5][6]. Group 3: Company-Specific Insights - Tesla's future performance is questioned, with a projection of a 1000% increase in earnings over five years, but concerns about whether such growth can be achieved sustainably [3]. - Huachen China is presented as a significantly undervalued investment opportunity, with potential for substantial returns as the market corrects its valuation [4][6]. Group 4: Emotional and Psychological Factors - The article stresses the need for investors to remain patient and not be swayed by market euphoria, advocating for a long-term perspective on investments [6]. - It highlights the psychological aspect of investing, urging investors to stick to their original investment thesis and valuation anchors [6].