Author Sophie Hannah, known for her psychological crime novels, has shared how she and her husband realized millions from investing in a British startup. The company, CMR Surgical, which develops robotic arms for laparoscopic surgery, was founded by the husband of her daughter's singing teacher.
A Lucrative Investment
Hannah invested £35,000 in CMR Surgical in 2013, the year her father died. Eight years later, the company was valued at £3.5 billion. Hannah and her husband sold their shares in 2021, describing it as a "real game-changer financially" that provided them with complete financial freedom. This investment allowed them to purchase a holiday home, a stone farmhouse on the Cornish coast.
Career and Finances
Hannah, who has sold over five million books and penned several Hercule Poirot mysteries, has signed three book deals worth £1 million or more. She also runs a coaching program for writers. Despite her financial success, she continues to work, stating she loves what she does and has no plans to stop writing or coaching.
Financial Philosophy and Decisions
Reflecting on her financial journey, Hannah shared that her father was cautious with money, while her mother, the children's writer Adele Geras, was less involved in financial decisions. However, her mother tripled her net worth after her father's death by following a financial advisor's advice, teaching Hannah that excessive caution can be detrimental.
She recalled a period of financial struggle early in her marriage when a discount mortgage increased unexpectedly, leaving her fearing they might lose their home. They resolved this by transferring their mortgage to a different provider.
Hannah identified spending approximately £100,000 on a fee-paying secondary school for her children as her biggest money mistake, citing the teachers' poor conduct. She views this experience as a learning opportunity, having since co-written murder mystery musicals that feature a problematic school, one of which became a movie.
Future and Legacy
Hannah intends to leave all her money to her children, acknowledging the significant role of luck in wealth creation. She believes people who hoard their wealth often miscalculate the ratio of "I earned it" to "I had brilliant good fortune." She also maintains a private pension and a substantial investment portfolio, which she considers her primary retirement fund. The couple owns their primary residence in Cambridge, a Victorian townhouse purchased for £685,000 in 2010 and now valued at £1.5 million, in addition to their Cornish holiday home.