How To Become A Billionaire: The Story Of Michael Lee-Chin.
Life lessons and inspiration.
Welcome back to On The Money. A newsletter that brings you the stories of the world’s most successful people, and business news.
This week, we are looking at Jamaican-Canadian billionaire Michael Lee-Chin. A leader, father, and inspiration to many. The man behind NCB and many other companies that you may know. Changing lives and helping others. From a landscaper to owning skyscrapers. This is the story of a man from the shores of Portland.
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Here Comes Michael
Born on January 3, 1951, in Port Antonio, Jamaica. His mother used to sell products from popular consumer brand, Avon. His mother later married Vincent Chen and had 7 children, bringing the total bunch to 9 kids. They operated a small grocery store. Michael attended Titchfield High School for his secondary level education.
Michael got his first job as a landscaper. Have you ever been to Frenchman’s Cove Resort in Portland? If not, I’m suggesting that you book your next vacation/ outing for there. While you are there, try to get some jerk pork (for pork lovers) at the world-famous Boston Jerk. It was at this beautiful getaway that Michael got his first job on the landscaping team. His next job was cleaning the engine room aboard the Jamaica Queen Cruise Ship. After completing high school, Michael took a year off. During that time he worked as a lab technician at a bauxite aluminum plant in Jamaica.
Here Comes An Opportunity To Change Things
Michael’s opportunity came in 1970. He got a scholarship to study Civil Engineering in Canada at McMaster University. During this time, he worked as a bouncer at a club. After graduating he worked as a road engineer in Jamaica for a short period of time. He later returned to Canada and became a mutual funds salesman. He shared that at the time, being a big black guy, he stood out and added to that by buying a top-line Mercedes Benz.
Michael was hungry. He wanted to make it big time. In 1983, an opportunity came for him to buy shares in Mackenzie Financial Group. 32-year-old Michael would need $500,000 to buy those shares. Luckily he got a loan from the Continental Bank of Canada to do so.
By 1987, that $500,000 had turned into $3,500,000! That was enough motivation and fuel to push any ambitious person. Micheal used his profits to buy an investment firm called AIC Limited. At the time of his buy, the firm had $800,000 under management. 20 years later, assets under management stood at $15 billion. Lee-Chin looked up to American legendary investor, Warren Buffett. Buffett is the head of Berkshire Hathaway. And that is where Michael got the name to set up his new holding company; Berkshire Group of Companies.
Lee-Chin’s company, AIC faced a serious challenge in the late 1990s. You may have heard of the Dotcom bubble. The period in which everyone was cashing out their safe investments. And, were pouring it into internet companies. AIC had many of its investors pulling funds to chase the internet fad at the time. You know how it ended, with some being completely wiped out. Michael’s wisdom helped his company to outperform the stock market in 2000-2001. All while everything else around was crashing.
Mr. Lee-Chin came across another opportunity. It was to buy National Commercial Bank (NCB) in his home country, Jamaica. He worked hard to put a solid team in place to save the struggling bank. NCB is now the largest financial institution in Jamaica. It has offices in the Cayman Islands, the U.K., and Trinidad & Tobago.
NCB’s market capitalization (price to buy the entire company on the stock exchange) is $308 billion JMD. Michael manages almost all his investments through Portland Holdings.
Portland Holdings partnered with Risley Group in 2005 to build Columbus International Inc. This company provided high-speed internet and cable throughout the Caribbean and Latin America. Cable & Wireless Communications (C&W) bought Columbus in 2015. C&W was then bought by Liberty Global in 2016. A company that Michael has an ownership stake in.
Michael is the owner of Trident Hotel, Trident Castle, Reggae Beach, and Blue Lagoon. These are some of the most beautiful properties in Jamaica and around the world. It would be interesting for him to buy Frenchman’s Cove. His first place of employment.
Personal Life
Michael is the father of 5. He married Vera and they had 3 children. The couple separated and then got a divorce. Michael went on to have two more kids with his current partner, Sonya Hamilton. He admires his mom and all the value she instilled in him as a child. He considers her to be his biggest role model.
All work and no play will make you sad and miserable. These days Michael travels by jet or by his helicopter. He seems to be keeping up with fashion too. You can spot him in bright colors or designer shoes from time. He owns a home in Miami beach too, I guess that’s for when the north gets too cold.
Michael Lee-Chin has donated to many causes. Some of them include:
$4 million to Northern Caribbean University for a nursing school. In honor of his mother.
$5 million to McMaster University. For the Michael Lee-Chin & Family Institute of Strategic Business Studies at the Michael G. DeGroote School of Business
$10 million to Joseph Brant Hospital to support the redevelopment and expansion campaign
NCB pays for students who are doing Principles of Business and Principles of Accounting in secondary CSEC exams.
NCB has paid off outstanding fees for students graduating from the University of the West Indies Mona.
He has received many awards for his contribution to society.
The Order of Ontario
The Order of Jamaica
The Marcus Garvey Lifetime Achievement Award
The Luminary Award from the University of the West Indies, and many more.
Life Lessons
At the writing of this letter, Michael Lee-Chin has a net worth of $1.4 billion USD. Let this be a reminder that your current situation has little to do with what you can do. Set your goals and make a plan to achieve them.
Last night I was watching a Brian Tracy video. And in the video, they were discussing what it takes to have a good business. Mr. Tracy shared this point. The number one quality for success is FOCUS. Distractions will come. But it's key to dig within and remind yourself of what you want.
Michael made a solid point once. Most people talk about diversification. But if you spread “risk” too much then there will be very little opportunity to make a good return.
Michael gives a 5 step process for wealth creation:
Own a few high-quality businesses.
Understand these businesses.
Ensure that they are in industries that will stand the test of time.
Use other people’s money prudently.
Own these businesses for a long time.
He encourages that we should all invest. Whether you are a landscaper, vendor, or anyone else. It should be a part of your plan to invest some of what you earn. You cannot work and save your way to wealth, you must invest. He also said that having access was important also. Access to mentors, finance, and resources.
If you found this letter valuable then I would appreciate it if you subscribe. Thank you and see you next week. God’s will.