Buy yourself a 115pc set, because that will have any size that you might need, although you may not need them all the time. If you purchase a set of "Made in USA" they are going to be pricey compared to the imports, but it is very much worth it when you need a specific size fractional/letter/number bit, and they are not readily available locally.
Next, purchase the bits you use most often in "quantity" paks from either Enco or MSC (totals range from 6 to 12 bits per pak, depending on bit size. NOTE: My recommendation is to purchase "made in USA" and NOT the "Import". The reason I say this is because I have learned over time that the Import bits, while always cheaper, will sometimes have size variations. This can really mess you up, especially if you need precise hole for things such as folders.
Materials wise, I generally purchase Cobalt, because it offers me a good price/value ratio. I personally like 135 degree split points. This point is designed for metals, and because I own a Drill Doctor sharpener (there was a time when I though the Drill Doctor was a gimmick, but I have worn out three of them now, and they have saved me untold $$$ in drill bits) I can get a lot of mileage out of bits 1/8" and larger...I consider smaller than that size disposable.
Lengthwise, Jobber bits tend to be full length, with the overall length dependent on the dia. Screw Machine bits are "stubby" but offer the best in rigidity. Spotting drill are just that...for spotting only. That means they are intended to make only a small "spot" on the work piece, which is followed by a jobber or screw machine bit to complete a hole. Most of my bits are jobber length, but I also have a number of screw machine bits for jobs where I want rigidity and accuracy.
There are tons of specialty bits out there, and I have found that some of them can be very handy in the knife shop. Particularly "Hi-Roc" bits from MSC or MA Ford. These bits are usually a 1 or 2 flute design, for materials up to an Rc of 65. I keep them around in specific sizes for folder detents, and for when I mess up and forget to drill a thumbstud hole in a folder blade prior to hardening. These are some of the most expensive bits you can buy....I just checked MSC, and 1/8" Hi Roc bits are listed for $19.30 each. Pricey, but when you need one, there is nothing else that will do the job.
In the end what you buy will likely be dictated by your pocketbook, but remember that saving a few pennies now, often costs you down the line. In the end each maker settles on the cost/value ratio that fits their needs.