This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.
"We believe that the most prudent way to make money in the stock market is through long-term investing in 'best of the best' companies," says growth stock specialist Nate Pile.
In his Nate's Notes newsletter, he explains, "With that in mind, we turn to one of our core portfolio holdings as out favorite investment for 2009 -- Apple (NASDAQ: AAPL), whose products represent 'best in class' in just about every category in which it competes.
"We believe investors have shifted their focus entirely to the extreme near-term and are completely ignoring the long-term fundamentals that are in place for the Apple.
"To be sure, the stock has lost over 50% of its value over the past twelve months, but we believe the reasons for the decline are all short-term in nature, and we cannot help but get excited by the opportunity to once again become more aggressive about adding additional shares to our portfolio.
"The first and most obvious reason for the decline in the stock is that investors are worried (and rightly so) about a slowdown in consumer spending.
"However, while it is true that the company will likely see some softness in sales along with the rest of the industry while the economy struggles to get back on its feet, Apple is sitting on close to $25 billion in cash, and thus the company is very well positioned to weather the storm.
"Of course, it should not be overlooked that, in addition to producing computers that offer a far more compelling computing experience (despite the higher price of entry) than nearly all of its competitors in the PC arena, the fact that the company's other product offerings (iPhone, iPod, etc.) also rise head-and-shoulders above the competition is helping to drive new customers to the Mac platform.
"Along with their anxiety about consumer spending, investors have also pounded the stock lately on concerns about Steve Jobs' health.
"However, while there is no doubt that he is one of the great visionaries of the Information Age (and has clearly been a major force in Apple's rise to greatness), we expect that he has consider a succession plan that will keep his vision for the company in place long after he leaves his post as CEO.
"In our opinion, to believe otherwise is nothing more than wishful thinking on the part of short-sellers hoping to squeeze a few more points out of the stock ... and while it is true that the stock may take another tumble if Mr. Jobs' health fails, we would most certainly look at any such sell-off as an opportunity to buy the stock rather than an excuse to sell.
"It may take awhile longer for investors to start looking across the 'doom and gloom chasm' before they are once again willing to bid up the prices of stocks that are dependent on the consumer.
"However, for investors who think in terms of years rather than months, we believe the shares of Apple are extremely attractive at current prices. Apple is considered a buy under $105 is a strong buy under $85."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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