Magic Johnson’s approach to Magic Johnson business advice distils to a single discipline: always position yourself in the room where the wealthiest, most experienced person is standing. Appearing on Business Insider‘s coverage of a guest-hosted edition of Jimmy Kimmel Live, Johnson laid out the philosophy that guided his transition from professional basketball to a business empire valued, according to Forbes, at an estimated $1.6 billion.
The Dream Team dinner that shaped Magic Johnson’s business philosophy
The most vivid illustration Johnson offered came from his time on the 1992 US Olympics squad, widely known as the Dream Team. At a dinner hosted by Prince Rainier of Monaco, Johnson found himself looking out at a harbour full of yachts and making a quiet calculation about where to spend his time.
‘All the players, they were over there on the side, talking to each other. And I said, I’ve got to get over there with Prince Rainier, who owns all of Monaco,’ Johnson recalled. ‘Why would I want to be over here with the millionaires when I can be over there with the super super billionaire? And get some experience and tips from him.’
Johnson introduced himself, and the two spent roughly an hour together. He said the encounter also led him to get to know Prince Albert, Rainier’s son. The anecdote is not merely a colourful aside: it captures the operating principle Johnson says underpins everything he has built since leaving the Los Angeles Lakers. ‘I’ve always gravitated to people who are smart or have been through something because I want to learn,’ he said. ‘I want to always learn, and grow, and get better.’
From courtside to corporate: the Magic Johnson business portfolio
Johnson’s largest single asset is a 60% stake in EquiTrust, a life insurance company he took control of in 2015. When he acquired that stake, EquiTrust held approximately $16 billion in assets under management. According to Forbes, that figure has since grown to $33 billion, a more than doubling of the book under his stewardship.
Beyond insurance, Johnson’s commercial footprint extends across food services and sport. According to Tuskegee University, SodexoMAGIC (a 51/49 joint venture with global food services company Sodexo) provides food service and facilities management to corporations, government entities, and educational institutions across the United States. Forbes also notes that Johnson holds small ownership stakes in the NFL’s Washington Commanders, MLB’s Los Angeles Dodgers, the WNBA’s Los Angeles Sparks, and MLS side LAFC.
Much of the groundwork for that portfolio, Johnson suggested, was laid through deliberate relationship-building rather than innate expertise. He described cold-calling and arranging lunches and dinners specifically to question successful people about what drove their results. ‘I called so many people and met with them for lunch and dinner to pick their brains about what made them successful, and what did I have to do to be successful,’ he said.
He credited Howard Schultz, the former CEO of Starbucks, with giving him the opportunity to open 125 new Starbucks locations. More broadly, he argued that having people in positions of influence willing to assist him was a material factor in his success. His other piece of advice for aspiring entrepreneurs: walk the community, identify gaps, and build into them. ‘We didn’t have theaters, so let me build movie theaters. Oh, we didn’t have a Starbucks. Let me put a Starbucks there,’ he said.
Forbes first listed Johnson as a billionaire in October 2023, placing his fortune at $1.2 billion at that point. His career earnings with the Lakers totalled approximately $40 million, meaning the great bulk of his $1.6 billion net worth traces to investment decisions made after his playing days ended.
Johnson is not alone among athletes who have moved deliberately into business. Serena Williams began building an investment portfolio through Serena Ventures in 2014, while still competing at the highest level of tennis. In 2025, Williams outlined three principles for founders: confirm there is a market for the idea, invest in relationships, and prepare for setbacks. Maria Sharapova took a similar approach, using injuries and time away from the court to pursue business courses and internships. ‘I was like, I’ve got to hustle. I’ve got to start learning from other people,’ Sharapova said.
For Johnson, the ego check comes first. ‘Take your ego out of it and know that you don’t know it,’ he said, advice that, in his own telling, he applied the moment he crossed a palace room to speak to the richest person present.