Successful investing in ASX 200 shares doesn't just require one to find high-quality companies. You also have to weigh up the risks and rewards of buying said companies at the prices being offered by the market.
As the late and great Charlie Munger once said, "No matter how wonderful a business is, it's not worth an infinite price".
With that in mind, let's discuss two ASX 200 shares that I think offer a compelling risk and reward balance at their current pricing.
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Two ASX 200 shares with compelling risk-reward profiles today
CSL Ltd (ASX: CSL)
First up is ASX 200 healthcare giant CSL. Today, CSL shares are going for $238.35 each, down 0.65% for the day thus far.
What's interesting about that price is that it's virtually the lowest CSL has traded at any time in the past five years. You could go back as early as October of 2019 if you wanted to see CSL at the same valuation as it is going for today.
This is despite CSL growing healthily almost every year since 2019.
To illustrate, the ASX 200 healthcare share reported a 5% rise in revenues at its most recent half-yearly earnings, and a 7% increase in net profits after tax. In the company's full-year results from August last year, CSL reported 11% revenue growth in constant currency terms and a 25% spike in profits. The previous year, revenues were up 31%, while adjusted net profits jumped 20%.
CSL has also raised its full-year dividend from US$1.85 per share in 2019 to US$2.64 by 2024.
CSL is an ASX 200 company that is likely to keep growing at a healthy pace for years to come. With the CSL share price at relatively low levels today, I believe this company presents a compelling opportunity.
ANZ Group Holdings Ltd (ASX: ANZ)
Our next ASX 200 share is a more prominent one, being one of the four major bank stocks on the ASX.
ANZ is a well-worn favourite of dividend investors. Like the other major banks, it has built up a reputation as a reliable provider of fat dividend paycheques to investors.
Most of the major ASX 200 banks have been on a tear in recent years, spearheaded by the breathtaking gains we have seen for Commonwealth Bank of Australia (ASX: CBA) shares.
However, ANZ has arguably been left behind. At the current $29.16, the bank's shares are presently less than 6% above where they were four years ago. Contrast that with CBA, which has jumped more than 78%.
Sure, ANZ is not in the same league as CBA when it comes to scale and quality. However, I still think it is a solid business that offers some compelling returns at current pricing. As it stands today, buying ANZ shares means you are bagging a dividend yield of 5.7%, well north of what the other ASX 200 majors currently have on the table.
Given ANZ's comfortable position in the Australian banking sector, this company is another strong option to consider today from a risk-reward standpoint.
