Bilbo

"But so far trouble had not come; and as Mr. Baggins was generous with his money, most people were willing to forgive him his oddities and his good fortune. He remained on visiting terms with his relatives (except, of course, the Sackville-Bagginses), and he had many devoted admirers among the hobbits of poor and unimportant families. But he had no close friends, until some of his younger cousins began to grow up." (Tolkien, The Fellowship of the Ring, Chapter 1, page 1).

Here in the words of the author, Bilbo Baggins' character is described perfectly. He is a good, generous, and humble hobbit. However Bilbo is envied by some because 

"At Ninety he was much the same as at fifty. At ninety-nine they began to call him well-preserved; but unchanged would have been nearer the mark. "  (Tolkien, The Fellowship of the Ring, Chapter 1, page 1).

 His rumored wealth from his journey with the 13 dwarfs to the Lonely Mountain had become a legend among hobbits. Although he had all this attention he was neither proud nor arrogant, but humble and generous. This character is greatly misrepresented in the movie, when Bilbo tells Frodo at his party that he is "...very selfish. Yes I am, very selfish." (Peter Jackson, The Fellowship of the Ring.) 

Bilbo's good fortune at being "well-preserved" did not come from mere luck. On his journey to the Lonely Mountain, he found at the bottom of a chasm in the Misty Mountains, a Ring. Bilbo knew this Ring was magical, because every time he put it on, he disappeared. This aided him greatly to save the 13 dwarfs from spiders and elves, and with it he even stole from the dragon Smaug. This Ring is the reason why Bilbo had been "well-preserved" for it was the One Ring of Sauron. Although Bilbo didn't know it yet, he would be in danger if he kept it any longer than he did, in danger of becoming like Gollum. Yet since he was a humble Hobbit, he was able to let the Ring go, and pass it on to Frodo. 


After Bilbo left the Ring with Frodo in the Shire, he journeyed to the Lonely Mountain again, and found things going excellently with the dwarfs. After that he went back to Rivendell, and there he stayed for a long time, finishing his book. Yet, after many years, the elves were finally going to leave Middle Earth forever and go to the land of the Valar. Therefore Rivendell would no longer be inhabited. So Bilbo had to leave, but he was given a great gift. The elves allowed him to go on the last ship to the land of Valar with them. So he went with the elves, and lived happily ever after.