If you were in the economic development position in your local city, one of the things you would love to have is the headquarters of a large company. That combined with other government offices helps to ensure the economy of the area will be less affected by economic cycles than other areas. The company headquarters typically brings spinoffs as accountants and lawyers will tend to be nearby, hotels will be built as people travel and the list goes on. In addition, often head office companies or their founders will contribute to the social life of the community with both donations and whatever they are interested in. For example, one of the Waltons in Bentonville, Arkansas likes to trail ride and has teamed up with Wal-mart to have great trails in the Bentonville area. It has become another reason to visit Bentonville.

In an article by Rebecca F Elliot of the New York Times News Service, Chevron, the second largest US oil company is moving its headquarters from California to Houston, Texas.

Chevron’s ties to California date to the 1870’s and was known as Standard Oil of California. Chevron has people where the oil is and presently has over 7,000 people in the Houston area compared with 2,000 at its San Ramon headquarters. San Ramon is near San Franciso and in 2022, Chevron did a sale leaseback with the space, perhaps the writing was on the wall.

Linking to dividend paying stocks, there are multiple trends which happen in all industries, and when a corporation moves for its best interests, someone else loses. It could be the real estate market which has to absorb the space, homes for sale, the corporate dollars for social events, there can be an affect, and hopefully new companies evolve and will take its place. This is part of the American Dream and in some places it works well with little disruption, in other places they are in a time slowdown until somebody discovers them again. As an investor, you are more of the optimistic side because it can happen and does happen on a regular basis which is a good thing for the economy in general.

There are more questions than answers, till the next time – to raising questions.