Both gluttons and investors should be aware of the buffet concept. A buffet is a spread which covers many dishes sometimes of different cuisines and many of us in Singapore are aware that the buffet we have tend to be expensively price but only 1-2 dishes stand out while the rest are average at best. Even the very best buffet is expensively priced but does not have all the culinary gems.
ETF- Is it a Diversified Buffet?
In my view, it is. Too diversified and nothing tastes nice on your investment plate. Yes, it plays safe because every dish gets a chance to be on your plate which leaves you "full", however the concept of outsized returns fails when you buy a buffet of stocks because the return from the best dish is overshadowed by the medicore of the many.
Ala Carte- Research and Choose your Own
This is why...