A composite magnet having a steel back plate on which an inner section of a first magnetic material having a high residual magnetic strength and an energy product greater than 25 million and preferably 35 million G-Oe or greater is positioned. Although possessing such high residual magnetic strength, the first magnetic material contained in the inner section comprises less than 1/8 the entire volume of the composite magnet. A barrier surrounds the inner section, and an outer section of a second magnetic material abuts the barrier and surrounds the sides of the first magnetic material. Such second section of magnetic material has a low residual magnetic strength (i.e., 3,800-4,000 G), and an energy product greater than 3 million G-Oe.