Advanced Stock-Picking: Grill Top Brass

Understanding what you own is one of the keys to successful investing. And when it comes to stocks, management matters. Here's why and how you can take on a more active role in your stock homework.

From Goldman Does It Again With Profit Beat:

Goldman Sachs (GS Quote) posted sliding second-quarter profits Tuesday, but easily topped Wall Street's expectations tempered by the lingering credit crunch.

While Goldman's stock was flat in trading Tuesday, the firm, which had thus far escaped the credit crunch relatively unscathed, appeared to have dodged another bullet.

"Given the difficult market conditions, we are particularly pleased to be able to report strong results for the second quarter," Chairman and CEO Lloyd Blankfein said.

Read the full article.

Cramer: Goldman's Right Where Lehman's Wrong (Video)

Lehman Brothers (LEH Quote) is a mess, plain and simple, says Jim Cramer, and pales in comparison to Goldman Sachs.

Cramer: "I look at what Dick Fuld [CEO] did with Lehman Brothers in 2007 and it was stupid... They had to be among one of the worst lenders of 2007. Goldman didn't lend at all and Goldman played with its own capital... We tend to want to only look at Goldman and think it was only right by luck. What I'm saying is, when you're right as often as they are, maybe they're like Chipper Jones [baseball player for the Atlanta Braves ] -- maybe they're like a .400 hitter... Goldman is a .400 hitter."

To watch the full video, click the player below:

From Lehman CEO Fuld Faces His Critics:

Lehman Brothers CEO Richard Fuld put the target on his back Monday, as he kicked off the beleaguered firm's conference call to discuss its $2.8 billion second-quarter loss.

Fuld faced analysts for the first time since Lehman ousted CFO Erin Callan and COO Joseph Gregory on Thursday, three days after the firm warned of its losses. In typical fashion, the type-A Fuld took charge of the conference call from the outset, perhaps mindful he could be the next to lose his job if shareholders remain unhappy with the direction the brokerage house is headed.

"This is my responsibility," he said of the firm's poor performance of late, part of an opening speech that preceded his turning the call over to Lehman's new CFO, Ian Lowitt.

Read the full article. Plus, get up to speed with Lehman Brothers Breakdown.