Investing research is governed by the [Quantity] x [Quality] relationship. Therefore, it should be obvious that if either Quantity or Quality is zero, the value of your whole output is also zero.

Or, as the British might say, if you collect a lot of rubbish, all you have is a big heap of rubbish.

So what determines Quality?

It’s governed by the [Relevance] x [Correctness] x [Completeness] relationship.

Same deal, if any of these is 0, the whole thing can be near-useless. Let me illustrate with an example of researching a CEO of a company you are considering as an investment.

Relevance: 

- Past business dealings are highly relevant

- Favorite food is not

Correctness: Knowing the incentive structure accurately is important, because if you are under a mistaken impression it can derail your conclusion.

Completeness:

- Knowing his two past roles accurately is great…

- … but not if your research leaves out that he was a convicted felon earlier in his life

This is obviously a contrived example, I know. However, it lays out an important roadmap for how you should conduct your research.

You don’t need to know everything. That’s impractical.

The goal is not to know more. The goal is to know what matters, know it accurately, and know enough of it to make a sound decision.