A strong majority view in markets will tend to drive them significantly higher or lower. Because many participants follow momentum, or feel the need to be part of the “herd,” these bull or bear trends often take security prices a long way away from what we at Brandes perceive as their underlying intrinsic value. We believe (and have observed over many cycles) that these trends often reverse eventually, and prices move back towards underlying value, offering significant investment opportunities along the way. But the key word in Cundill’s quote in our view is “later.” Sometimes it takes a long while before the majority is proved wrong. Patience is said to be a virtue, but for value investors, it is a necessity.    

Source: There’s Always Something to Do: The Peter Cundill Investment Approach, Christopher Risso-Gill (McGill-Queen’s University Press, 2011)