Jury Still Out on CSL

I’m hanging in there on CSL but for me it’s been a very disappointing ride so far.


Here is an update of a table I’ve posted before :





It illustrates the significant opportunity cost of holding CSL shares for the past 2 years (March 19 2020 represents the depths of the COVID selloff)

The market clearly can’t see the growth required to justify a PE ratio of 40 or 50 like it once did......and I guess thinking logically the bigger a company gets the harder it is to maintain that sort of growth momentum.

CSL has certainly had its challenges through COVID but so have thousands of other companies across a multitude of sectors - the market is now largely pricing them based on the post COVID landscape. The threat of higher interest rates doesn’t help either however, again, CSL isn’t alone there.

There is no questioning the standing of CSL the company. An absolute A1 success story with worldwide admiration and respect. However as a stock it seems to have been loved beyond what it can deliver......that’s not the company’s fault.

In any case, the question I still ask myself is.....if CSL trades in the high $200's for another 2 or 3 years .....paying a 1% dividend ......does it warrant a place in my portfolio?

I still think in these more challenging markets the quality of CSL will see it return to $300 but those that think this will be a $500 stock in a few years time simply based on the compounding growth of yesteryear might just be dreaming.

Hope I’m wrong.