Like many 'quality companies', and CSL is quality, I am the first to admit that.
Future returns are not dictated by just quality, its the price the market has paid for that quality. Over pay in terms of price paid (ie share price) and future returns are impaired, quality company or not.
Like many quality companies, CSL growth rate is not constant, it goes up and down, but EPS over time always goes up over time. Because of the quality.
But to pay 40 times earnings, with a growth rate of 10-15%, well to me that's over paying.
Especially from a total return point of view (ie dividends paid (1% measly) + growth).
And especially in an environment whereby the risk free return (ie interest rates) are no longer zero.!!!!!
One day you guys will see me with a 'position held', but not yet. Making good money on other positions.
CSL Price at posting:
$277.38 Sentiment: None Disclosure: Not Held
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