Magic Johnson shares his best strategies that lead to success in all walks of life. We both share the same goal of making as many millionaires as possible in our community. I believe it is essential to create more black millionaires so black wealth does not hit zero in the year 2053.
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Magic Johnson is tried and true
Before you discount the Magic Johnson the businessman by telling me he had a bunch of money from his professional career, he didn’t. What I mean is he is worth around $600M today and he retired from basketball having generated $18-$20M. Athletes in the 1990’s were not paid as much as they are today.
The first investment Magic made when he retired was to purchase a 4.5% stake in the Los Angeles Lakers for $10M. This investment worked out very well for Magic. When he sold his stake several years later, the he received $50M. His second investment was in a small coffee shop named Starbucks. Magic Johnson convinced Starbucks to open some of their shops within the under-served inner cities. This turned out to be a great idea and Magic Johnson profited as a result. When he sold his 50% stake in 125 Starbucks locations, it is reported that his net worth stood at $100M.
This also provided several opportunities for Starbucks to revisit their expansion plans. They are now investing more into black and brown communities and hiring management positions that represent those communities.
Changing the way people think
From his first two investments, Magic Johnson was able to turn $20M into $100M. He did this mostly by focusing on the needs of the under-served communities he grew up in. This was a reoccurring theme within the business opportunities that Magic pursued. He used this model when he partnered with Sony to open several movie theaters within the inner city. Before this, blacks were traveling 45-60 minutes to go watch a movie. However, they were the #1 consumer of movies at the time.
In addition, Magic Johnson used some of his funds to create organizations for entrepreneurs in the under-served communities who did not have access to start-up capital. He wanted to help them get their business off the ground and teach them the keys to success.
Through his work to serve the black community, Magic Johnson was able to create enough income that when the opportunity came to purchase the Los Angeles Dodgers; he was positioned to capitalize on it. In collaboration with a couple investment firms, Magic Johnson was able to purchase a stake a stake in the Los Angeles Dodgers.
What does this mean for you?
It is a reminder that you need to put away the funds over time so you can be ready for the opportunity when the time comes. It is good to start with putting away 5-10% of your income until you make the habit of investing it. Once you have the habit, and then feel free to increase your contribution to 20-30% of your income. You want to get to a place where you are living on 70% of your income and investing 30% for your next opportunity.
Look for ways to reinvest your money in programs that will benefit your community. Invest in things are passionate about and understand a great deal. Magic Johnson reminds us the benefit of knowing your customer and over-delivering.
He talked about changing the music in his Starbucks to Prince and Earth, Wind and Fire. He shared his strategy of changing the deserts they offered from scones to sweet potato pie. Magic Johnson knew what made urban communities comfortable and he over-delivered every step along the way.
More articles you may enjoy:
- Chasing Happiness by Rising to the Challenge
- How Chasing Happiness Will Help You Catch Greatness
- Chasing Happiness with Dr. Mae Jemison (Restore Black Wealth)
- Chasing Happiness with Dr. Philip Emeagwali (Restore Black Wealth)
- Chasing Happiness with Thurgood Marshall (Restore Black Wealth)
Magic Johnson continues to innovate and change perceptions that people have about the urban community. Success is a language that everyone speaks and it is often a requirement. You cannot change the way people perceive you until you change the way you see yourself.
Until next time,
Dre “Better Self ,Better Wealth” Griggs