CSL Ltd (ASX: CSL) has been one of the most heavily sold-off blue-chip shares on the ASX over the past year.
At current levels, the share price is down significantly from its 52-week high of $275.79.
While sentiment has clearly weakened, I see a biotech business that still has the same long-term drivers in place.
Here is why I'd be comfortable putting $20,000 into CSL shares.
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The underlying demand is not going away
CSL operates in areas of healthcare that are not discretionary.
Its core plasma therapies are used to treat chronic and rare conditions. These are ongoing treatments, not one-off purchases, which creates a recurring demand base.
What is important to me is that this demand is tied to patient need rather than economic cycles.
Even though recent results were disappointing, the company continues to expect future growth to be driven by immunoglobulin, albumin, and newer product launches.
With its first-half results, Ken Lim, CSL's CFO, said: "In the second half, we have an ambitious growth plan, driven by immunoglobulin (Ig), albumin and our newly launched products."
That tells me the underlying drivers are still there.
It is still investing for the next phase of growth
One thing I look for in a long-term investment is whether the company is still building.
CSL is continuing to invest heavily in its future, including expanding its plasma manufacturing capacity and progressing its pipeline.
It is also working through a broader transformation program aimed at simplifying operations and improving efficiency.
These are not the actions of a business standing still.
They are the kinds of investments that can support growth over the next decade, even if they weigh on sentiment in the short term.
The competitive position remains strong
CSL has spent decades building its position in global healthcare.
It operates at scale, has deep expertise in plasma collection and manufacturing, and continues to invest in research and development.
These are not easy advantages to replicate.
What matters here, I think, is durability. Even when performance is uneven, businesses with strong positions tend to recover and continue growing over time.
That is one of the key reasons I would be willing to look through the recent poor performance and share price weakness.
The reset changes the starting point for CSL shares
The CSL share price is now in a very different place compared to where it was a year ago.
At higher levels, it was easy to question the valuation. After a 50% decline, that starting point has shifted materially.
I am not suggesting the share price cannot fall further. But I do think the risk-reward looks more favourable now than it did previously.
If the company delivers on its growth plans over time, today's price could look cheap in hindsight.
Foolish takeaway
CSL has gone through a difficult period, and the share price reflects that.
But the underlying demand, long-term growth drivers, and competitive position still appear to be in place.
With the share price down heavily, I would be comfortable investing $20,000 with a long-term mindset, expecting that the business can rebuild momentum over time.
