There are two ways for shareholders to “earn” money:
Selling their shares for a higher price than they paid for them
Holding onto their shares in return for a payout from the company, known as a dividend.
That can create a return that’s higher than the rate of inflation, which is how the right investment can help you beat inflation.
Of course if there are concerns about the company’s growth or performance and demand for shares is low, the value of your shares will go down and you may get back less than you invested. There’s no guarantee on dividends either. In a poor year, the directors may decide there isn’t enough money for a payout. As Emma says, it’s always worth remembering that investing is for the long term.