Does the Concept of Buffet vs Ala Carte Works in Investing?
By Investmoolah  •  November 6, 2023

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

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By Investmoolah
A total otaku who loves anime, investing and the occasional K-drama. My financial journey begun at the age of 22 and has revolved around the concepts of "Working Hard", "Saving Well" and "Investing Wisely". Through my journey, I have realized that financial literacy is something we have learnt little during our school days but is one of the most useful and relevant skill that we have to be equipped to take on the real world. Concepts such as compounding and "common sense investing" are skills that will place us ahead of the race to retirement ...

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