Never Sell CSL?

In the Australian stock market, for years and years there was a saying:

“Never sell CSL.”

This informal mantra was common among investors and brokers and reflected CSL Limited’s reputation as a blue-chip, defensive, growth-and-dividend stock. The idea was that CSL’s business in plasma-derived therapies and vaccines was extremely stable, high-quality, and consistently growing, making selling the stock almost unthinkable.

Key reasons behind the saying:

• CSL had strong, predictable earnings and cash flow.
  
• It consistently paid and increased dividends, making it attractive for long-term investors.
  
• It held dominant positions in certain therapies, providing defensive qualities even during market downturns.
  
• Over decades, it demonstrated strong share price growth.

The phrase was never an official rule but rather a shorthand among investors for “hold forever unless something significant changes.”

Well over the last few years, a lot changed. The once market darling has experienced some truly turbulent times.

Why the mantra is changing

• Valuation risk: CSL’s share price has grown substantially; some analysts see it as expensive relative to earnings.
  
• Global competition: Biotech rivals and generic products may pressure margins over time.
  
• Operational risks: Plasma supply, regulatory hurdles, and R&D outcomes introduce uncertainty.
  
• Market shifts: Investors now weigh CSL against higher-growth biotech or diversified portfolios rather than just “blue-chip safety.”
  
• Interest rate environment: Higher rates make defensive growth stocks like CSL less attractive relative to other sectors.

Current perspective

CSL remains a high-quality, defensive growth stock, but the “never sell” mantra is less absolute. Long-term holding is still reasonable, but investors are encouraged to assess valuation, portfolio fit, and alternatives.

Some holders now trim positions to rebalance or take profits rather than blindly hold forever.

Bottom line:

CSL is still top-tier, but modern portfolio thinking treats it as a strong, but not untouchable, asset.

At the moment its price on the monthly shows that it could be at a good value area with a history of swing back up around 40% or so and its been regaining ground recently with some momentum if you look at the daily.

Could be worth a watch.