Buffett tells us to go in the opposite direction of the “herd.” At Brandes, our investment stance has often put us in that situation ... but only when we have a reasoned, analytical view as to why the herd might be wrong. Fear and greed are powerful drivers of stock prices, and to oppose them successfully, the investor must have a solid estimate of the value of the company behind a stock price. With that in hand, the investor can be neither greedy nor fearful, and remain dispassionate and rational. (We know that may be less exciting, but our experience is that has worked better!)   

Source: Berkshire Hathaway, Inc., 2006 Letter to Shareholders