A recent study from Penn State University challenges traditional investment strategies by suggesting that a company's location may be more critical than its growth potential for achieving higher investment returns. The researchers found that portfolios designed to consider both company headquarters and regional housing markets could generate returns three times higher than those focused solely on growth stocks. The analysis, published in the *Journal of Empirical Finance*, examined 9,308 companies from 2000 to 2019. It revealed that firms in high-cost areas like Silicon Valley and New York incur significant operational expenses, which detracts from returns to investors. The study combines finance and real estate models, addressing the long-standing 'value-growth premium' phenomenon, where value stocks outperform growth stocks. Co-author Timothy T. Simin emphasized the importance of location in investment strategy, stating, "Where firms locate their headquarters matters." The findings suggest that local governments aiming to attract businesses should focus on making housing affordable to reduce labor costs, ultimately benefiting both firms and investors.