It is a tough year to be invested in equities where the stock market is experiencing a seemingly endless cycle of fluctuations. Major US indices fell last week, with the Dow Jones Industrial Average ending the week at 29,888.78 – just a day after dipping below the 30,000 key level for the first time since January 2021. Meanwhile, the S&P 500 released its worst week since 2020 and The Nasdaq Composite ended the week 4.8% lower. And with the Fed ready to pursue a more aggressive rate hike policy, it could mean even more volatility ahead for equities. Venture capitalist Kevin O’Leary believes it is useless to try to time the market. “I can not time the market. I just can not. I have tried so many times, but you just can not,” O’Leary, chairman of O’Leary Ventures, told CNBC’s “Squawk Box Asia”. “on Thursday. Instead, he prefers to own companies that he thinks are sustainable.” What I like to own are companies that will not be reset. Moderna will not be reset, Pfizer will not be reset, and Nestle will not be reset. They have companies that are very sustainable, “said O’Leary. Moderna and Pfizer are both pharmaceutical companies – a sector that often has significant cash flows and stable returns, and as such is seen as more robust during a downturn. Both companies have been on At the forefront of global Covid-19 vaccination efforts, the US Food and Drug Administration on Friday approved Pfizer’s three-dose vaccine for children aged 6 months to 4 years and Moderna’s two-dose vaccine for children aged 6 months to 5 months. Biopharma shares currently make up about 4.5% of O’Leary’s portfolio, while the broader healthcare sector accounts for around 20% Investors also like consumer goods such as Nestlé as they are less affected by economic cycles and enjoy of relatively stable earnings growth and dividend payments. “I own companies with strong balance sheets that make money. Now the prices of their stocks are going up and down based on people’s perception of what the price-to-earnings ratio should be. And even the health care system has not escaped the downturn. companies are strong, “he added. In addition to their strong balances, O’Leary also likes these companies for their good cash flows – some of which are distributed back to investors as dividends. The three stocks are all in the red this year, but Nestle and Pfizer continues to pay dividends, Nestle has a dividend of 2.6%, while Pfizers is 3.4%, Moderna does not currently pay dividends. ‘Never more than 20% in a single sector’ The massive market correction this year has undoubtedly scared some investors, but O’Leary is not affected by the short-term price declines. In fact, he is doubling the names he believes in. “We are not up and we have had a few tough months like everyone else, but I thinking long term about this … What I do is I try to find re-entry points because I always try to inject capital. If I believe in the company’s history, I’ll put more money into working on a correction, “he said. O’Leary said he recently bought undisclosed shares in Walt Disney, Adobe and DocuSign. He acknowledged that the shares are dropped “a lot” but is confident they will return at some point.He is also careful about how he handles risk in his portfolio. “You have to have diversification,” he said.His golden rule? “Never more than 20% in a single sector and never more than 5% in a stock,” he said, describing it as a strategy that has worked for him “for decades.”