The stock market is a place where success is the only criterion for judging heroes. If it goes up, it's right; if it goes down, it must be wrong—completely unreasonable. So, if you want to make money, you must first understand what can make money and what kind of money you're earning. 1. Earning money from profit growth This is the easiest to understand, which is the core way value investors make money. As a company's profits continue to grow, its market capitalization naturally increases. For such increasingly profitable companies, their stock prices are bound to rise in the long term. 2. Earning money from valuation growth Even companies that aren't profitable or aren't making much money can see their stock prices rise. This is due to an increase in PE rather than profits, as the market believes their future will be better...