The CSL Limited (ASX: CSL) share price has enjoyed strong returns over the past 10 years, up 920%. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up around 80% over the same time frame.
Below, we take a look at the power of long-term investing. I will calculate how much you would have made if you invested $1,000 in CSL shares a decade ago.
How is CSL comparing against the ASX 200?
On average, the ASX 200 has returned 6.16% to shareholders in the past decade. The most significant gain was achieved in 2019 when the index grew by 23.02%.
On the other hand, the biggest fall came in 2011, down by 10.84%. You might be thinking that 2020 would be on the list, but during that year, the ASX 200 rebounded sharply.
The biotechnology company's shares have historically outperformed the ASX 200 by a long shot. In the past 10 years, the company has delivered a yearly average return of 26.07% since 2011.
What if you had invested $1,000 in CSL shares 10 years ago?
If you had invested $1,000 in CSL shares on this day 10 years ago, you would have bought them for around $29.20 each. This would have given you approximately 34 shares in total without factoring in any dividend reinvestment.
Fast-forward to today, the current CSL share price at the time of writing is $298.19. This means those 34 shares would now be worth an astonishing $10,138.46 (34 shares x $298.19). When considering percentage terms, this implies an upside of approximately 920%.
Are CSL shares a buy now?
Recently, a number of brokers have rated CSL shares with widespread price points.
Last month, JPMorgan raised its 12-month price target by 5.2% to $280.00 for the company's shares. Macquarie soon followed, slicing 1.3% off its outlook to $308.00 per share.
However, the most recent note came on Friday from leading New Zealand investment firm, Jarden. The broker lifted its price on CSL shares by 4% to a bullish $348.20. It appears Jarden views CSL as an attractive opportunity for the next year.
