With an estimated net worth of $1.2 billion, former NBA star Magic Johnson is one of only four athletes — the others being Michael Jordan, LeBron James and Tiger Woods — who have achieved 10-figure status, according to Forbes.

However, unlike his peers, Johnson has been retired from sports for over 28 years. The vast majority of his wealth was created after his basketball playing days ended in 1996, which might make him more of an investor than an athlete.

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After earning $40 million as a player in the NBA, per Forbes, Johnson acquired stakes in various sports franchises, made direct investments in private companies, introduced franchise locations to underserved communities, redeveloped properties and launched new media brands. His sophisticated investment strategy has helped him expand his wealth 30-fold since the mid-90s.

His magical journey offers several lessons for investors.

Focus on overlooked assets

A key tenet of Johnson’s investment philosophy is focusing on the demands of multicultural communities.

“I knew there was buying power in the minority communities,” he said during a speech at UC Irvine in 2015.

This philosophy informed his team’s decision to bring franchises such as Starbucks and Burger King to underserved communities. His portfolio also includes investments in mitú, the Latino-fueled media brand, and a controlling interest in EquiTrust Life Insurance Company, which he acquired with the stated goal of providing financial services to minority groups.

For regular investors, the lesson is clear: there’s value in overlooked and underappreciated segments of the economy. According to JP Morgan, many investors have turned away from small and mid-cap stocks in favor of mega-cap tech stocks and artificial intelligence. This could be an opportunity for some bargain hunting in the lower-end of the market.

Read more: Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead

Partner with the best

Another key characteristic of Johnson’s investment process is the insistence on working with well-established strategic partners. He partnered with Will Ferrell and Tony Robbins to co-buy the Los Angeles Football Club of MLS and joined another syndicate of investors led by Apollo Global Management’s Josh Harris to acquire the NFL’s Washington Commanders last year.

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Not all investors can strike such megadeals in the boardroom, but investors might want to pay attention to their “co-investors” while studying companies. For instance, Warren Buffett’s recent stamp of approval for Ulta Beauty may warrant a closer look for investors seeking to add an undervalued brand to their portfolio.

Diversify

After nearly four decades of dealmaking, Johnson’s sizable portfolio includes stakes in renewable energy companies, tech startups, infrastructure companies, media outlets and even an esports team.

Other wealthy investors are similarly well-diversified. According to the UBS Global Family Office report, ultra-wealthy families across the world have allocated 28% of their assets to equities, 22% to private equity, 10% to cash, 10% real estate and 1% each in art and gold.

Of course, you don’t need to be ultra-wealthy to benefit from diversification. Splitting your assets between index funds, individual stocks, bonds and perhaps gold could offer some stability to your long-term performance.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.