Bilbo Baggins is a Hobbit from The Shire. Bilbo was the one who found the ring and brought it back to Hobbiton.

After his magnificent birthday party he passes the ring onto Frodo, his heir. He then leaves Bag End (his home) forever.

Frodo and friends get reunited with Bilbo in Rivendell. There they find he has settled down to write some books about his adventures. When they depart, to continue their own journey, he gifts Frodo with Sting, his magic sword, which glows when orcs are about. He also gives him a mithril shirt. This is a rare metal which is harder than steel, yet marvellously light.