Differences between a custom Search Folder and adding a folder to favorites

I don’t see any difference between adding a specific folder to Favorites and creating a custom Search Folder. What am I missing?

Adding a folder to Favorites, is just displaying one of the folders from your accounts, say an Inbox, in the Favorites area.

A Search Folder is a folder that shows the results of a search, such as some messages from a selection of folders that match criteria such as they are tagged with a specific tag as well as within a specific date range and are also from a specific sender.

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Makes sense thanks @Gary