He is also careful about how manages risk in his portfolio. He acknowledged that the stocks have come down "a lot" but is adamant that they will bounce back at some point. O'Leary said he recently bought undisclosed stakes in Walt Disney, Adobe and DocuSign. If I believe in the company's story, I put more money to work on a correction," he said. "We're not up and we've had a rough couple of months like everybody else, but I'm a long-term thinker about this… What I do is I try and find re-entry points because I'm always trying to deploy capital. In fact, he is doubling down on the names he believes in. 'Never more than 20% in any one sector' The massive market correction this year has undoubtedly spooked some investors, but O'Leary is unfazed by the short-term price declines. Moderna does not currently pay a dividend. Nestle has a dividend yield of 2.6%, while Pfizer's is 3.4%. The three stocks are all in the red this year, but Nestle and Pfizer have continued to pay dividends. In addition to their strong balance sheets, O'Leary also likes these companies for their good cash flows - part of which are distributed back to investors as dividends. And even health care has not escaped the downturn. Now the prices of their stocks go up and down based on people's perceptions of what the price-to-earnings ratio should be. "I own companies with strong balance sheets that make money. Investors also like consumer staples such as Nestle as they are less impacted by economic cycles and enjoy relatively stable earnings growth and dividend payments. Biopharma stocks currently form about 4.5% of O'Leary's portfolio, while the broader health care sector accounts for about 20%. Food and Drug Administration on Friday authorized Pfizer's three-dose vaccine for children 6 months to 4 years old, and Moderna's two-dose vaccine for children 6 months to 5 years old. Both companies have been at the forefront of the global Covid-19 vaccination effort. Moderna and Pfizer are both pharmaceutical firms - a sector which often has significant cash flow and steady dividends and, as such, is seen as more resilient during a downturn. They have businesses that are very sustainable," O'Leary said. Moderna is not going to zero, Pfizer is not going to zero and Nestle is not going to zero. "What I like to own are companies that are not going to zero. Instead, he prefers owning companies that he thinks are sustainable. I've tried so many times, but you just can't," O'Leary, who is chairman at O'Leary Ventures, told CNBC's "Squawk Box Asia" on Thursday. Venture capitalist Kevin O'Leary believes it is futile to try to time the market. And with the Fed poised to pursue a more aggressive rate hike policy, that could spell even more volatility ahead for equities. Meanwhile, the S & P 500 posted its worst week since 2020 and Nasdaq Composite ended the week 4.8% lower. indexes fell last week, with the Dow Jones Industrial Average ending the week at 29,888.78 - just a day after it dipped below the key 30,000 level for the first time since January 2021. It's a tough year to be invested in stocks, with the stock market experiencing a seemingly never-ending cycle of gyrations.
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