Core Viewpoint - The article emphasizes the importance of quantitative analysis in investment decisions, suggesting that it can help investors avoid emotional reactions to market fluctuations and make more informed choices based on long-term trends rather than short-term market movements [2][3][15]. Group 1: Investment Philosophy - Investment masters like Buffett and Templeton focus on long-term market trends and individual stock analysis rather than short-term market predictions [2][3]. - Quantitative analysis serves as an antidote to emotional decision-making, allowing investors to understand market mispricing during extreme market conditions [3][15]. Group 2: Asset Class Dynamics - All major asset classes, including stocks, real estate, bonds, and gold, compete for investor funds, with the ten-year Treasury yield serving as a benchmark for risk-adjusted returns [4][5]. - If an asset class's return is lower than the ten-year Treasury yield, it is considered less attractive than holding government bonds [5]. Group 3: A-Share Market Analysis - The current ten-year Treasury yield in China is 1.7%, while the annualized return of the A-share market over ten years is approximately 8%, indicating a favorable investment environment in A-shares [7][10]. - The overall valuation of the A-share market is around 15 times earnings, which is lower than the historical average valuation of U.S. stocks, suggesting potential for growth [10][14]. Group 4: Market Valuation Metrics - Buffett's valuation principle suggests that when the total market capitalization of listed companies is around 67% of the GNP, it indicates a good buying opportunity for stocks [12][14]. - The article notes that the current market capitalization of A-shares is approximately 94 trillion yuan, with a projected GNP of 140 trillion yuan in 2025, supporting the argument for favorable valuations [14]. Group 5: Historical Context and Future Outlook - Historical evidence shows that stock market irrationality is cyclical, and investors should prepare for the next round of market fluctuations [15]. - The article concludes that despite economic growth, stock prices are currently lower than five years ago, suggesting that investors can achieve better returns with the same investment amount [15].