We continue our journey speaking to legendary investors on how they invest and the philosophy of investing, in the context of markets like India. In this episode of #InvestmentMantras, we speak with Samir Arora, founder of Helios Capital Management, who has been actively investing in India for more than 25 years in many avatars. Samir Arora says that there are two ways to invest in stocks - you could invest in bad companies and hope that they will become good. There are many people who - not so much in India but in the world - will do activist investing or they will buy very cheap stocks and hope that they will turn around. Or you buy through the regular route which is called growth investing. It means that when we buy shares, we are riding off the efforts of the company. Our job is only to choose between those companies, rather than say that we will add some more value. He also says that over the years, he has realized that it is easier to say what is bad and not buy it. Take your hundred stocks and remove stocks that have very bad valuations or clearly bad sectors, which means they could be very much government policy driven or global; remove leveraged companies, remove bad management history companies. When you remove everything, you'll be left with about half the market. This is without doing anything other than reading. And then if you will be left with 10 private sector banks, say five pharma companies, then you select within them. Watch BOOM's Govindraj Ethiraj interview Samir Arora on the best way to select investments for retail investors and avoid the hype as well as conviction that must last for a very, very long period of time.