How to Make Money in the Stock Market — Growth & Value Investing


How to Make Money in the Stock Market — Growth & Value Investing – 9 Tips

Check out our FREE investing starter kit, it covers all the basics and has 5 stocks to get you started, go to

Hey I’m editor Nick Sciple, and on this episode of FAQ we’re answering the question you’ve all been asking: How DO you make money in the stock market?

People invest to make money: plain and simple. Except in special circumstances, like shorting a stock, investors buy a stock with the hopes that it will increase in value, allowing him or her to sell the shares later at a higher price and pocket the difference as profit.

But how can we know that a stock is going to go up — before we buy it? In the short term, stocks go up or down for an endless number of reasons, from military conflict and news releases all the way down to individual Tweets. However, there’s only one reason a stock prices increase or decrease over the long term [which is all that matters]: to match the value of a company’s assets and cash flows. As Ben Graham famously said, “In the short run, the market is a voting machine, vacillating based on the news of the day, but in the long run, it is a weighing machine, measuring the actual value of a business.”

Now that we know why a stock’s value increases over the long term, we can answer how to make money in the stock market. There are 2 ways make money in the stock market: buy a company for less than it’s worth OR buy a company at a fair value and hold it as it grows over time.

Imagine I offered to trade you a $1000 car for 500 bucks. Would you take it? Most of you probably said yes — Free 500 bucks, right? You know you can take that car, and with patience and effort, find a buyer for the car’s full value. Maybe the seller didn’t want to put in that effort, didn’t know what the car was really worth, or for whatever reason, needed the car gone quick. and that’s why she sold it to you. This same thing often happens in the stock market: a stock falls out of favor, whether due to bad news around the company, market volatility, or innumerable other reasons, and its price falls below what the company would be worth to a reasonable purchaser based on its earnings and assets. Intelligent investors can then purchase shares of the company for less than the company itself is worth, and just like with the car, sell the shares for a tidy profit once the market realizes its mistake. Also like the car, it may take a long time to find a buyer, markets can remain irrational for a long period of time.

However, this strategy has been among the most successful in the history of investing. This approach, buying shares of companies for less than the resale value of the company as a whole, is known as value investing, and has been used for decades by famous investors as Warren Buffett and Benjamin Graham to build incredible wealth.

Now, imagine I offered to sell you a grocery store in a small town of 100 people for fair value. This grocery store is the only one in town, everyone in town shops there for all their food, and it’s profitable. You know that in 5 years a new factory will be built in the town bringing 500 new people to the area and the total population up to 600 people. Would you take my offer?

Of course you would! You know that in 5 years the grocery store will have 6 times as many customers as it has today. With a larger customer base, it should pull in even more money, making the store look extremely undervalued in 5 years!

This same phenomenon often occurs in the stock market. For example, when Amazon went public in 1997, it enjoyed a market value of around $450 million. Over the ensuing 20 years as consumer preferences have shifted toward e-commerce and the company has wrangled emerging trends like cloud computing, streaming games, and advertising, Amazon’s earnings have skyrocketed by 34,000% as it has enjoyed growth in those markets and the company now holds a market value of ¾ of a trillion dollars. For investors who were patient — and confident– enough to hold the company for the long term, through 50%+ selloffs, competitive risks, and probably some boredom, Amazon has provided life-changing returns.

This investing style, buying companies with promise for future growth and holding for the long term to realize benefits from growth, is known as growth investing and has been used by investors like Phillip Fisher and The Motley Fool’s Gardner Brothers to great success.

Whether you invest for value or growth — or you shoot for some of both — successful investing requires knowledge and patience:

Subscribe to The Motley Fool’s YouTube Channel:
Or, follow our Google+ page:

Inside The Motley Fool: Check out our Culture Blog!
Join our Facebook community:
Follow The Motley Fool on Twitter:

Thanks for watching the How to Make Money in the Stock Market — Growth & Value Investing video!

Watch the How to Make Money in the Stock Market — Growth & Value Investing video on Youtube



  1. Roddie Houston
    July 19, 2021 at 11:54 am

    This video says it all , Even the best trades and the most profitable trading strategies won't be effective if you don't have strict money management rules in place to protect your winning trades, cut your losses and grow your account that is while I highly recommend Mr Romero pieto who indeed trades on my behalf making me earn more profits every week.

  2. Kevin Meyrick
    July 19, 2021 at 11:54 am

    Thanks for this valuable information

  3. Annisah Farah
    July 19, 2021 at 11:54 am

    It’s a must to build multiple streams of income especially in this period of the pandemic. Also, have in mind we don’t know if or when another pandemic can happen. So now is really the best time to start pushing a side hustle because no one can fire you from your own business and well your 9-5 we all know how quick they can get rid of you. If you have to work to pay bills by all means do what you have to do but make sure you get your priorities together. I've been doing that by investing in the stocks, bitcoin and financial market and I'm grateful to say I've earned a lot so far this month working with Bryan Green through his registered investment company. Just do something that will make you money while you sleep, no matter how little. The pandemic has been a perfect eye-opener for us all to really see how life can be without your usual income stream. You can reach him on  Email: or WhatsApp: +49(1521)9263-482,for all crypto related inquiries.

  4. JohnnyBlack56ACE
    July 19, 2021 at 11:54 am

    I’m personally feeling the arm swag. I’m getting Eminem 8 Mile vibes and I’m waiting for son to drop a few fire bars right after dropping investment knowledge. Continue the arm swag 💯 🔥 💰 📚 📖

  5. Pezaermd
    July 19, 2021 at 11:54 am

    dude this nerd just left a party that's why his arm is all over the place

  6. Nurudeen Ajewole
    July 19, 2021 at 11:54 am

    It was very difficult for me and my family to feed during the pandemic am so great full to God for letting me come across Mr Carlos @Carlos_1uptrades on Instagram. he thought my forex trading and now am earning massively..

  7. Altruce
    July 19, 2021 at 11:54 am

    Thanks for the info… also your arm is flying away plz try to wrangle that thing 😅

  8. Savanah Tayler
    July 19, 2021 at 11:54 am

    Fantastic video ❤️I still see cryptocurrency as one of the best digital investment and i totally love the technology when it comes to the largest crypto asset Bitcoin As a trader, i have been able to understand that there are two sides when it comes to crypto and everyone has their opinions when it comes to choosing sides, though i am not kicking against Hodl, but i see it as an old and odd strategy to make profit of the market as when the market goes bearish investors/traders loses their investment which is always painful. My advice to investors/traders is to day trade or copy trade alerts from professional trader like Mr David Lambert who use PRICE ACTION MARGIN to read the market and generate accurate signals which i use daily to grow my grow my initial 0.9 btc to 6.2 btc in 5 weeks of active day trading. I would say this to anyone who is willing to achieve and grow a very strong portfolio to take advantage of this present market price to buy and day trade with Mr David's daily signals. He can be contacted via Whatsapp +447427211622 and telegram @davidlambert1 for inquiries into profitable trading systems.

  9. Subash Tamang
    July 19, 2021 at 11:54 am

    I got my answer thanks

  10. Dylan Hope
    July 19, 2021 at 11:54 am

    In the beginning I got my worries, but once I started using this new and different program, I’ve been earning over $122 each day. You must trust me on this, I have a lot of experience when it comes to sites that guarantee to give out lots of money and survey jobs and in the end, I obtained so little. This site is just the very best. If you want to learn about this system, just look for it on Google by typing "Kοyοgο ydα". For sure you will like it. .

  11. Michael George
    July 19, 2021 at 11:54 am

    What is he wearing?

  12. luke shaw701
    July 19, 2021 at 11:54 am

    Finally made my first cash online using payingmecash,wordpress,com

  13. Angel Broking Ltd.
    July 19, 2021 at 11:54 am

    How can I earn in intraday or swing trading

  14. Kimora
    July 19, 2021 at 11:54 am

    Very very well explained. Ignore those people’s comments below.

    July 19, 2021 at 11:54 am

    Рассказываю, как можно получать пару раз в день до 95 дол. на свою банковскую карту. Смотрите видео у меня кaналe

  16. 14 below zero
    July 19, 2021 at 11:54 am

    BRO! your arm has lost its mind and is shaking all over the place!!!

  17. Augustus Miller
    July 19, 2021 at 11:54 am

    Quick question to anyone who might have some idea on this topic.
    So am investing through robinhood right.
    As we all know if you investing short term your gains is tax at about 37%, where as longterm it tax at abour 15% for every dollar you earn.
    But my question is for example;
    If I brought 2 stock into a company on April 1
    Than I brought another 2 stock in that same company on April 5
    By april 10 I decided to sell 3 of those stock back with a total gain of 10dollar.

  18. Top Shelf
    July 19, 2021 at 11:54 am

    I’m getting sea sick stop rocking the boat

  19. H2W
    July 19, 2021 at 11:54 am

    Ok, so give me 5 good growth investment stocks.

    I’m a paying member of the fool since 2016

  20. Perry Leung
    July 19, 2021 at 11:54 am

    Easy way to make money in the stock market is bet on everything that is opposite from Motley Fool Cunts😂

    July 19, 2021 at 11:54 am

    Great fundamental explanations.

  22. D!ZTRACT
    July 19, 2021 at 11:54 am

    Great video. Ty for the training.

  23. Suhwateeze A.
    July 19, 2021 at 11:54 am

    Hello I am a member of motley fool Stock Advisor. Good video

  24. the matrix has you.
    July 19, 2021 at 11:54 am

    If life changing only if you invest lots of money on a small stock and get lucky lol 😂👍

  25. Tomahawk
    July 19, 2021 at 11:54 am

    Greenscreen on a boat or why is he moving that much 😉