At the end of the "The Hobbit" Bilbo leaves a note with the ring attached to it, saying that he plans to go traveling. At the beginning of "fellowship of the ring" Gandalf tells frodo to take the ring to Mordor and destroy it in the fires of the volcano. Bilbo does have a few minor parts in the later books but he is an old hobbit.
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Bilbo, Thorin, Smaug, Gandalf, Precious, the dwarves
Bilbo Baggins of Bag-end, Hobbiton, The Shire.
If Tolkien's words on the subject are to be taken at face value, then The Hobbit, Or There and Back Again are Bilbo's memoirs -- his account of his great Adventure. In the final chapter of The Return of the King, it says this: "There was a big book with plain red leather covers; its tall pages were now almost filled. At the beginning there were many leaves covered with Bilbo's thin wandering hand; but most of it was written in Frodo's firm flowing script...The title page had many titles on it, crossed out one after another so: My Diary. My Unexpected Journey. There and Back Again. And What Happened After. Adventures of Five Hobbits. The Tale of the Great Ring, compiled by Bilbo Baggins from his own observations and the accounts of his friends. What We Did in the War of the Ring. "Here Bilbo's hand ended and Frodo had written: THE DOWNFALL OF THE LORD OF THE RINGS AND THE RETURN OF THE KING (as seen by the Little People; being the memoirs of Bilbo and Frodo of the Shire, supplemented by the accounts of their friends and the learnings of the Wise.) Together with extracts from Books of Lore translated by Bilbo in Rivendell." In The Return of the King film, Sam is heard referring to Bilbo's memoirs as There and Back Again: A Hobbit's Tale by Bilbo Baggins. In short, The Hobbit is the "memoirs" of Bilbo, and The Lord of the Rings the memoirs of Frodo.
At the beginning of the book, he starts out almost like any other hobbit; carefree, laid-back and unwilling to get into any mischief or adventure, or do anything unusual. By the end of the book, however, he has faced goblins, wild wolves, giant spiders and a Great Dragon, and is more seasoned in his outlook on his life. Although he is still quite happy to be back in his hobbit-hole again.
Bilbo meets Gandalf and the Dwarves and hears of their quest. There is conversation over a fine meal and Bilbo almost thinks he wants to go. By the end of the chapter though he is not so sure.