Mr Millionaire

By Fiona Jones

In this book you will discover:

*How to use what you already know to make millions of dollars

*How to attract wealth and success into your life and business

*How to make money in any market

*Why you don't need a degree to be a millionaire

*How to live the life of your dreams

*The Secret strategies of self made millionaires

*The essential qualities of millionaires

Featuring Inspiring Success stories from;
PAUL BLACKBURN ( Beyond Success)

JAMIE MCINTYRE (21st Century Education)

JOHN GEARON (Outcome Strategist)

STEVE MCKNIGHT (PropertyInvesting.com)

DANIEL KERTCHER (Platinum Pursuits)

STEPHEN TOLLE (Renovating for Profit)

JUSTIN BEETON (JB Global Investment Services)

DARREN STEPHENS (Darren Stephens International)

ANDREW GRANT (Our Internet Secrets)

TONY SMITH (Cash Back Factory)

STEPHEN RAFF (ACE Body Corp Management)

PHIL CONNOLLY (Newhaven Funerals)

PETER SPENCER (QLD Property Advice)

MICHAEL R. DEAN (Global Franchise Systems)
WARREN HENNINGSEN (My absolute Success)

• Language: English
• Publisher: Fiona Jones
• Release date: Feb 15, 2012
• ISBN: 9781465951786

Book preview

Chapter 1

Justin Beeton

Millionaire at 24

I believe a great investment manager can deliver more pleasure and prevent more suffering than any doctor can.

Born in Sydney in 1979, Justin is a successful entrepreneur and investor, a sought after public speaker, author and climate change campaigner.

Justin bought his first share at the age of 14, and just 10 years later became a millionaire. Justin has created his entire wealth from the share market. This initial wealth gave him the capacity to follow his dreams and establish his own stock broking firm in 2004. In less than five years he has grown his net worth from millionaire to multi- millionaire. Now as a professional investment manager, Justin manages approximately $350 million.

Justin holds a Bachelor of Commerce Degree, has the highest possible derivatives accreditation, a post-graduate degree in applied finance and investment, and is a licensed investment adviser, stockbroker, financial planner and fund manager.

After university, Justin followed his passion for the share market and started working in the finance industry in 2000 as a stockbroker, gaining experience working at some of Australia’s largest financial institutions before founding JB Global Investment Services.

JB Global was recently ranked in the 2009 BRW fastest growing companies in Australia. His company was ranked as the number one fastest growing finance and investment firm in the country. Justin attributes this growth to having an outstanding team and providing consistent returns to investors.

Justin’s qualifications, personal experience, and extensive research into creating unlimited wealth have led to him developing a portfolio of powerful and proven investment strategies. His strategies enable investors to access the high potential gains available through the share market whilst significantly reducing risk.

When Justin is not focused on the share market, his other passions include spending time with his family, rugby union, cricket and golf.

What beliefs did you grow up with surrounding money?

Mum raised my twin brother Scott and I as a single mum. She worked extremely hard to ensure we had an education, both at school and at home.

When I was three months old my family purchased a caravan park in Terrigal, New South Wales. For the first five years of my life I grew up living at the caravan park. My grandparents lived on site for almost

20 years, and my mum was the operating manager up until I was 19. Scott and I spent our entire childhood growing up in this environment surrounded by some very happy people who were financially extremely poor.

Most of the people who lived in the caravan park were permanent residents. My friends were usually other kids who lived in the caravan park often living with up to six people in a small caravan. The sad thing is that some of the tenants often would have more children to receive greater benefits from the government. Usually the extra income was spent on gambling, alcohol and cigarettes.

When I was about seven years old a man living at the caravan park hanged himself in his van, and a few years later a man was murdered - his body found weeks later across the road in bushland. While I was young at the time, I made a commitment to myself to do whatever I needed to ensure my family never had to be exposed to such horrific incidents.

I realised at an early age that wealth does not equal happiness. I had friends that were born into wealth who became addicted to drugs, and others from the caravan park whose families had nothing and were extremely happy. I also had friends with enormous wealth that were extremely happy and friends who came from poor families that ended up in jail as a teenager. I believe we can choose how we want to live life.

What do you believe is the key difference between those who become millionaires and those that don’t?

I believe what differentiates those who lived in the caravan park and those who become millionaires is that the wealthy have an ability to recognise an opportunity and more importantly the ability to seize the moment, take action and do something with the opportunity.

So the first difference is an education. This does not necessarily need to come from a text book and rarely does. An education will give you the capacity to identify an opportunity or to differentiate between a great opportunity and a big mistake.

The second difference is that all millionaires just do it. They take action and make it happen.

Who were your mentors?

My first mentor was my mum who continues to be an inspiration. Only since becoming a dad have I really appreciated the sacrifices mum made and what a unique, loving, giving human being she is. Mum made enormous personal sacrifices to ensure both my brother and I had an education. This education gave Scott and I the ability to identify great opportunities.

Mum always encouraged us to strive for excellence, do our best and work hard. She always said find your passion and then devote your life to achieving it.

My grandpa was a businessman and throughout his life owned pubs, confectionery trucks, a fertiliser company, motels, hotels, and a caravan park. Not all of these businesses were complete successes. He had his fair share of ups and downs. He would work during the day and drive a cab at night to ensure his family had a roof over their heads and food on the table.

I remember at an early age my grandpa giving me the advice to treat everyone the way you would like to be treated yourself, irrespective of the amount of money they have, whether they live in a mansion or caravan, we are all human beings. My grandfather was a well-respected man, an inspirational leader, a very hardworking and successful businessman, and dedicated family man.

My mum and grandpa ensured my values were similar to theirs. They did this through leading by example. My values were founded by wanting to be just like them. These values include honesty, integrity, the importance of family, always giving 110%, treating everyone equally, and following my passions. There is no job worth doing unless you do the job properly.

What was your first investment?

For my 14th birthday mum gave me 1000 Woolworths shares. At the time I wanted a cricket bat so you can imagine my disappointment when I received shares in a grocery store. In hindsight, this was the greatest birthday present mum ever gave me (my brother received the same gift). This was my first introduction to the share market and investing. Mum had unique insight into ensuring Scott and I had an education above what could just be taught from a text book.

My brother worked at McDonalds on Saturdays and Sundays once he turned 14. I spent the weekends usually playing rugby in winter and cricket during summer. Looking back on my first share investment I made more money from the dividends and capital growth holding the shares than Scott did working for McDonalds.

Being boys, we were, and still are, very competitive so I made sure Scotty knew I had made more money than he did simply holding my shares and having a good time on the weekends rather than slaving over the hot plates at McDonalds like he did. At this early age I had first-hand experience into the philosophy that in order to create wealth you don’t necessarily need to work hard for your money, but more importantly need to ensure that your money is working hard for you.

My brother was quick to remind me that he in fact made more money than I did as he still held the same shares as I did, making the same profits but he also made an income from working. I then realised that the easiest way to create wealth was to work hard and have my money working hard for me at the same time.

From this early age, I understood the long term benefits of investing. I am extremely thankful to my mum for the shares as I have made plenty of money since from the share market. The share market is my passion, my career, my life. I did sell the Woolworths shares eventually making more than a 300% capital gain. Not a bad 14th birthday present after all.

What was your first job?

My first job was when I was around six years old restocking the soft drink vending machine at the caravan park. Grandpa helped me with this as I wasn’t tall enough to reach the top row.

I was also responsible for collecting, counting, wrapping and then banking the money. I would put all the wrapped coins in a bag and grandpa would drive me to the bank to deposit it into the company bank account. While they were only 20-cent coins grandpa taught me the theory that if you look after the cents the dollars will look after themselves. Actually, his words were look after the pennies and the pounds will look after themselves. I was paid a can of soft drink and a few of the 20 cent pieces to play the pin ball machines!

A few years later I learnt the lesson that no job is secure - I was replaced by technology. I lost my job, as Coca Cola Australia decided to provide the soft drink cans directly, and that included stocking the machine. The bank also introduced a machine that counted the money automatically. I was very disappointed when grandpa told me the news, but I was committed to ensuring I would not suffer the same fate as I moved forward. I understood that the only way my job can be protected was to become the boss.

What was your first childhood entrepreneurial experience?

I was fortunate enough to be surrounded by great teachers throughout high school. My Year 9 commerce teacher Mrs Jelfs gave the class a task of running a small business for around ten weeks. Most groups simply sold raffle tickets, or toffee apples to other students but not me.

One of my best mates Jason Ingold (we are still friends 16 years later) and I created a business developing breakfast tray mats to sell to local motels. We sold advertising space to local tourist attractions such as a horse riding farm, movie theatre, and a reptile park to offer discount coupons and two-for-one tickets to visitors.

This was a solid business as we were earning revenue from two sources. The motel owners were happy as they received the breakfast tray mats cheaper, the end user was happy as they could use the coupons to go to the local attractions at a discount, and the tourist attractions received record numbers through the doors.

Jason and I literally made thousands. The only problem was the printing of the 10,000 tray mats. The printer made numerous spelling mistakes on the mats so we had 10,000 mats that were useless (well so we thought). We asked the printer to have them reprinted at no cost and when he refused Jason and I took the matter to the Department of Fair Trading. The printer eventually agreed to reprint for the whole 10,000 at less than cost. We sold the lot within a few hours, made a large profit, went to the top of the class, and had 10,000 free passes to the local waterslide park and free movie tickets for life!

When were you given the opportunity to become a stockbroker and how did it come about?

My lifelong dream of becoming a rugby player for the Wallabies and representing my country after playing football since I was six years old was shattered at the age of 20. After three operations on my head, various shoulder injuries, eight broken noses, and two knee reconstructions the ‘doc’ told me the bad news that I couldn’t play again.

I was lucky that my mum had advised me to get an education just in case my pursuit for a rugby career ended. While I was an average student at high school I spent the majority of my early years at university focusing on rugby. In my last year at university I focused purely on the share market. During this time I was approached by a local stockbroking firm to work as an assistant. I was a client of the broking firm at the time making some serious money investing on the share market.

I believe the catalyst for being offered the position was the fact they recognised my passion for the market and they considered me to be a whiz kid, a stock market genius. I have never had a resume or had to show my academic transcript (thankfully, because I believed anything above a pass at uni was a waste of partying time).

At the age of 20 I graduated from university and accepted the role as an assistant stockbroker. While the pay was significantly less than a position I was offered in a bank, I chose the job in the small brokerage office because I wanted to be a stockbroker and could see the opportunity of working with four stockbrokers I admired and could learn from. So while the pay was less I knew I would have more opportunity for career progression over the long term.

I started as a stockbroking assistant two weeks prior to the 2001 dot com technology crash. I lost 95% of my net worth in the crash. What I thought was my passion, expertise, and my gift to the world had all come crashing down with the market.

I was living with my mum and grandpa at the time being only 20 years old. I went home and told my grandpa that night I had lost almost everything and that I didn’t have what it was going to take to be a successful share market investor or stockbroker. Sure I loved the pleasure associated with making money from the share market, but I could not deal with the pain associated with losing money.

My grandpa’s advice was that each and every one of us enjoys great times, and unfortunately suffers in bad times. Whether you want to become a successful sportsman, businessman or family man, and in my situation at the time a successful share market investor, you will experience highs and lows across all aspects of life. What differentiates those who become successful from those who do not is their ability to learn from their mistakes and continue to get back onto the horse when everything appears to be against you. My grandpa actually drove me to work the next day and reassured me that I had the education, the passion and plenty of time to become extremely successful. All I had to do was search for the opportunity that the problem presented rather than focus on the problem.

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Throughout history, people have focused too little on the opportunities that problems present.

Sir John Templeton, the late 95-year-old billionaire investor

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Grandpa reminded me that while I had lost money, this was a great opportunity to learn from my mistakes and progress. I now believe progression is the secret of life.

I did not invest personally within the share market for another 12 months. I was committed to ensuring I would not suffer from the same mistake twice.

A few months later the stockbroking company I was working for decided to shut down the small office and I was told my services were no longer required. I had all of the education requirements to become a stockbroker; I had minimal experience being only 21, but what I was lacking in experience I made up for in passion and the courage to back my own ability. I was faced with either becoming unemployed or to convince the head of the company to back my ability.

I said to my boss that rather than making me redundant and throwing me onto the street that I would be willing to work for nothing provided he gave me the opportunity to work as a stockbroker. What this meant is that he could have all of the upside if I succeeded as a broker without the downside as he wasn’t paying me a cent. This was a no brainer and great investment for him and the company. An offer he could not refuse. I am a big believer in finding what someone wants and giving it to them.

For me the downside was that I did not have a base salary and my future income was uncertain, however the upside was that if I successfully convinced my boss to give me a go, I would have successfully negotiated the job of my dreams. Once my boss became more accommodating to the idea I did demand that despite my young age he would need to put me on the same playing field as all other stockbrokers within the organisation. This meant if I made money for the company I would be paid a performance fee. My boss accepted my plan. So in the face of adversity when I was told I was being made redundant, I somehow convinced my boss to give me a promotion - all at the age of 21.

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The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy.

Martin Luther King Jr.

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The only problem was that I needed to eat. I had to make money. During that year I made some of my best investments just because I had to. I was so successful at 22 years of age that I was approached by Macquarie Bank and offered a large amount of money to work for the bank. By the time I was 24 I had established my own firm and was a millionaire. A few years later I was offered $9.75 million for my company. Based on similar numbers the firm is now worth approximately $24 million. For 2007 and 2008 my company was ranked as the fastest growing investment finance firm in Australia.

What vehicles have you used to build your wealth and how did you use them?

At an early age I knew how to make a lot of money on the share market, I just needed to develop a strategy to keep it when the market dropped, or when investing in a company whose share price fell in value. As a share market investor whether you are a novice or professional you will invest in a company that falls in value. To be successful you just need to have a good defence strategy and minimise the loss when this occurs.

When I stopped focusing on quick profits and focused on minimising the loss, I made a lot more money and became a millionaire. Many people have described my defence strategy as the ‘Holy Grail’ of the share market, and many professional fund managers now use the formula to reduce risk.

My secret defence formula is very simple. In fact all Australians have been using this formula to reduce risk in many areas or their life. To eliminate the capital risk of the share market you just need to invest in insurance. When you insure your shares the maximum risk you will face is the cost of the insurance premium.

R = IP - Div(t0 - t1)

or

Risk = Insurance Premium - total dividend received throughout the

protected period.

If the company does not pay a dividend then the risk is still the insurance premium paid to protect the share investment.

This is how I eliminate capital risk. Very simple and involves merely adjusting what you have been doing for many years by insuring your car but applying it to your share market investments.

As you have insurance you have the peace of mind and can invest a large amount of money within only a few companies to maximise returns. This is how I have made money. I protect my assets by buying insurance which transfers the risk to someone else. I make money by having the patience to wait for outstanding opportunities then I invest the bulk of my money into those shares. Unless I can make five times what I am risking, that is a 500% return on the risk, I will not invest.

There are more crashes on the share market each year than you are likely to experience in a lifetime of driving your car. So, is it not more important to have insurance on your investments whether that investment is held in your own name or in your superannuation fund?

Most of us would not think to insure our shares. Why is this the case? Perhaps most of us do not know that we can insure our shares.

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The business school rewards difficult complex behaviour more than simple behaviour, but simple behaviour is more effective.

Warren Buffett

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My stock market formula has protected the majority of my capital and my clients throughout 2008 and early 2009 when global share markets crashed over 50% as a result of the global financial crisis. I successfully avoided all the pain associated with losing money because I held insurance! When almost all other stockbrokers, fund managers, financial planners and share market investors were losing sleep, and probably hair, because of losing money, me and my clients had peace of mind knowing our share investments and superannuation were completely protected.

This is my now not so secret formula! Invest in the share market as it offers the greatest potential to make large profits, but always have insurance just in case the market falls! (I have included this strategy in more detail in my e-book available at www.mrmillionairebook.com)

What are your other passions?

I have been a climate change campaigner for numerous years. It is amazing once you have children your focus deviates to a greater purpose. Rather than my life being focused on myself, I became devoted to ensuring my children have even more opportunities than I have enjoyed.

After watching Al Gore’s documentary, An Inconvenient Truth, I realised the consequences of global warming will not be in hundreds or thousand of years but possibly in my lifetime and certainly my son’s lifetime.

After significant research I realised that we are already witnessing the consequences of global warming in Australia. I decided to make a difference and spread the word through sharing my time to write articles, speak at seminars and lead by example.

I sold my sports car and 4WD and purchased a 125cc scooter a few years back. I own 25 hectares of rural land that is devoted to growing trees. I use renewable energy. I fly completely carbon neutral. I catch public transport to and from work. As an individual I am making the world a better place rather than just reducing my carbon footprint. You too, can do the same.

I have also established what is now one of Australia’s largest renewable energy investment trusts. The investment focuses on solar power, wind power and biofuels. As the lead manager of the fund, this cause has now become one of my greatest investments. I believe this sector will become the next boom sector. And of course, just in case I am