I was reading that one going, but that sounds like for icons. LOL Yeah it can be a tad confusing to explain.
It should be pretty simple to do. I have done it on accident even.
It works on most versions of Android.
You don't actually create a folder first. You start it by combining two icons to start. That will make a 'folder', which you can then name, place where you want it and add other icons to.
Tap and hold any icon you want to move. It takes a bit of maneuvering, but you want to 'slowly' and 'lightly' place it over the other icon you want to place it in a folder with. I find it kind of funny that it can be done so easily accidentally but will be a hassle trying to do it on purpose. It does work.