As they grow, companies saturate their markets, become more complex and difficult to manage, and face larger and more entrenched competitors.

In general, great companies prefer to grow 'organically,' as Wall Street likes to say. That is, from the inside out, by finding new markets or by taking market share from their competitors.

Determining how many asbestos suits have been filed or how much companies have spent to resolve them is difficult. Cases are filed in state and federal courts, and many companies do not disclose their spending on settlements.

It's a very difficult, complex dilemma that we face.

Big companies often use their leverage to take stakes in would-be suppliers, especially in the technology business.

Higher productivity enables companies to increase sales without adding workers. Even if job markets tighten and wages rise, corporate profits can continue to climb as long as worker productivity is growing faster than overall wages.