The Map is Not the Territory

Why even the best financial models are useful approximations, not reality and why investors get into trouble when they forget the difference.

“A map is not the territory it represents, but, if correct, it has a similar structure to the territory, which accounts for its usefulness.”- Alfred Korzybski

We’ve all been there. It’s late, you’re four tabs deep into an Excel model, and the numbers finally “click.” The assumptions line up, the valuation looks clean, and the expected return is screaming…