Magic Johnson Is Worth Billions—But He Says You Can't Get There Thinking Only About Yourself

NBA Hall-of-Famer Earvin "Magic" Johnson is one of the rare athletes who can legitimately claim to be a better businessman than he was as a player. It may come as a surprise, but Johnson believes that thinking about helping other people was one of the keys to building his multi-billion-dollar business empire.

The 24/7 Wallstreet website quoted an interview from 2008 where Johnson said, "It’s easier to build wealth if you think about others instead of only focusing on filling your own pockets." Although that advice sounds counterintuitive, Johnson's logic becomes clear when you look at his business career in its entirety. One of Magic's first and most public forays into the business came when his adopted hometown needed him more than ever.

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It was 1995, four years after Johnson had announced his first retirement from the NBA due to having contracted HIV. The South-Central community of Los Angeles was trying to rebuild after the devastation caused by the rioting that broke out after the Rodney King verdict. The riots, which did hundreds of millions of dollars in damage to the community, had essentially scared off the major private investors needed for a rebuild of that scale.

Johnson, who made an estimated $40 million during his playing career, had always dreamed of becoming a businessman. He also had a deep desire to help rebuild the community. In South Central, Johnson saw an opportunity. Johnson stepped into the fray by opening the Magic Johnson Crenshaw 15 movie theaters in the Baldwin Hills Mall on Crenshaw Boulevard in South Central.

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However, Johnson didn't open just any movie theater. He opened up a first-class operation that featured stadium-style seating, multiple concession stands, and state-of-the-art surround sound technology. Those features were commonplace in suburban theaters, but they were virtually absent in South L.A. or any of America's historically underserved communities.

It was a big risk, but it paid off brilliantly for Johnson. Soon, Johnson's chain expanded to Harlem and other minority communities nationwide. Their success was pivotal in convincing big-box stores and retailers like Old Navy that investing in minority neighborhoods could be just as profitable as opening in the suburbs. Johnson, who had a contact list full of top-tier business connections, wasn't done.

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In 1998, Johnson convinced Starbucks (NASDAQ: SBUX) CEO Howard Schultz to let him open and operate multiple franchises in minority communities. Their first outlet opened on Crenshaw Boulevard in L.A., just a few blocks north of his theaters. According to the Los Angeles Times, Johnson eventually opened 125 Starbucks outlets nationwide before selling 105 of them back to Starbucks for $100 million. 

Johnson's investments and business deals are run through his company, Magic Johnson Enterprises, which he founded in 1987. Today, it's a multibillion-dollar operation with ownership stakes  in the Los Angeles Dodgers and the NFL's Washington Commanders. Much of Johnson's early business success was built on his willingness to help himself by helping others.

Could incorporating Johnson's ethos into your wealth-building strategy yield similar results? You may not want to help rebuild an entire community, but having a larger sense of purpose can sharpen your focus. You can find your motivation anywhere. Once you do, working toward your goal will become a labor of love.

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