Magic Johnson knows a thing or two about making the leap from sports to business.
Speaking to Anthony Anderson, who guest-hosted “Jimmy Kimmel Live” on Tuesday, the former NBA player shared the advice he’d give others looking to break into the business world.
“The first thing, take your ego out of it and know that you don’t know it,” Johnson, whose real name is Earvin Johnson, said.
Johnson said aspiring entrepreneurs should learn however they can, whether through books, conversations, or spending time with people who have already built successful businesses.
“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,” Johnson said.
He also said people should look around for gaps that could become business opportunities.
“I used to walk around the community and say, ‘What’s missing?’ Oh, 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.
Johnson also credited Howard Schultz, the former CEO of Starbucks, with giving him the opportunity to open 125 new locations. He added that having people in positions of influence who were willing to help him was an important part of his success.
He’s also been deliberate about putting himself around people he can learn from.
During his time on the 1992 US Olympics “Dream Team,” Johnson said he once attended a dinner hosted by Prince Rainier of Monaco. While at the palace, Johnson recalled looking out at the yachts and thinking that he wanted to be on one someday.
“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 said.
“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,” he continued.
Johnson said he went over to introduce himself, and the two “hung out for an hour.” He said the encounter also led him to get to know Rainier’s son, Prince Albert.
“I’ve always gravitated to people who are smart or have been through something because I want to learn,” Johnson said. “I want to always learn, and grow, and get better.”
Johnson has an estimated net worth of $1.6 billion, according to Forbes. The publication reported that Johnson earned about $40 million during his career with the Los Angeles Lakers, while much of his wealth came from his investments. His largest asset is a 60% stake in life insurance company EquiTrust, which has more than doubled its assets under management since Johnson took control in 2015.
Forbes first named him a billionaire in October 2023, when it estimated his fortune at $1.2 billion.
Johnson isn’t the only athlete to venture into business after finding success in sports.
Serena Williams started building her investment portfolio through Serena Ventures in 2014, while still at the height of her tennis career.
In 2025, Williams shared three tips for founders with Business Insider: make sure there’s a market for the idea, invest in relationships, and be prepared for setbacks.
In July, Maria Sharapova said she used injuries and time off from tennis to take business courses and internships to prepare for retirement.
Sharapova said she recognized early on that a professional tennis career would end much sooner than other professions, which gave her a sense of urgency about preparing for what came next. “I was like, ‘I’ve got to hustle. I’ve got to start learning from other people.'”
