GSK - Axsome Therapeutics: Buy at the High?
There might be something in our brains -- some fear of the unknown -- that keeps us from buying a stock at its all-time high. When you buy at the high, you have to realize that all the other holders of the stock got a better price than you did. You're in last place with the highest cost basis. Surely that's a bad place to be, right?
Axsome Therapeutics (NASDAQ: AXSM) was the best-performing stock in 2019. Investors who bought $5,000 worth of the stock at the beginning of the year (1,779 shares at $2.81) are now sitting on $176,000. Let's not let those fantastic gains -- or how cheap the stock used to be -- distract us from the important question: Is this biotech stock a good buy today?
Image source: Getty Images.