Warren Buffett has spent decades showing investors that price and value are not always the same thing.
That idea feels especially relevant when good ASX shares fall out of favour.
Several well-known shares are trading far below their previous highs, and I think some could reward investors willing to look past the current pessimism.
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Price creates the opportunity
Buffett once wrote: "Price is what you pay; value is what you get."
A lower share price does not automatically create value. The business still needs attractive assets, a credible recovery path, and enough financial strength to work through its challenges.
But when the market becomes too focused on what is going wrong today, long-term investors can sometimes buy future earnings at a much better price.
Treasury Wine Estates Ltd (ASX: TWE) is one share I would examine closely.
The wine company has faced setbacks across its US operations and has struggled to convince investors that recent acquisitions will deliver the expected returns. Its Penfolds brand still has considerable global recognition, while China and other Asian markets could support growth over time.
The recovery needs better execution, but the lower share price gives investors a more forgiving starting point than they had near the highs.
Back businesses that can regain momentum
Temple & Webster Group Ltd (ASX: TPW) is another fallen ASX share I would consider.
Furniture demand can move with consumer confidence, housing activity, and interest rates, which means the company's growth will rarely arrive evenly.
I still like its long-term position as spending continues moving online. Temple & Webster can offer a wide range without carrying the same store network as traditional retailers, while data and technology can improve merchandising, marketing, and the customer experience.
WiseTech Global Ltd (ASX: WTC) has endured an even more dramatic loss of confidence.
Governance concerns, leadership questions, and uncertainty around the e2open acquisition have weighed heavily on the shares. Yet CargoWise remains deeply embedded in the operations of major logistics companies.
Global trade is full of paperwork, customs requirements, freight movements, warehouses, and regulatory complexity. WiseTech has an opportunity to bring more of those processes into one platform and automate more work through artificial intelligence.
I would keep the position measured, but the long-term opportunity looks far more attractive after the share price decline.
Quality can become cheap too
Some of the best opportunities can appear when the market loses patience with companies that were once considered untouchable.
CSL Ltd (ASX: CSL) and Cochlear Ltd (ASX: COH) both fit that description in my opinion.
CSL needs to improve execution across plasma, vaccines, and Vifor, while Cochlear has faced softer implant demand and hospital capacity constraints. I think those concerns deserve attention, but both companies have spent decades building global healthcare capabilities that would be difficult to reproduce.
REA Group Ltd (ASX: REA) also looks more appealing after its fall.
Property listings can weaken when housing activity slows, yet REA Group's position at the centre of the Australian property search remains strong. Its audience, data, agent relationships, and network effects give the company several ways to keep developing its platform.
Foolish takeaway
I would not try to predict exactly when sentiment will recover for any of these companies.
Instead, I would focus on whether the business can produce meaningfully higher earnings over the next five or 10 years than the market currently expects.
They all have problems to solve, which is why their share prices have fallen so heavily. But they also retain brands, technology, market positions, or specialist capabilities that could support a recovery.
Following Buffett's approach requires patience and discipline. For investors prepared to provide both, I think today's market offers several cheap ASX shares worth buying.
