One of the major themes of The Hobbit concerns the use of power on several different levels. Gandalf has magical powers that you see him use almost immediately. As the story begins, he places a secret mark on Bilbo Baggins' door that causes the dwarves to congregate at the hobbit-hole. He seems to know much more about Bilbo than can be explained, and he has a certain gift for prophecy. He uses a magic wand at times, and he appears and disappears at will. The full extent of his sorcery is demonstrated in The Lord of the Rings, but even in The Hobbit, Gandalf clearly has powers that exceed those of the other travelers. His magical power is reflected in his age and his wisdom.
Although much younger than Gandalf, Bilbo's wisdom increases throughout the story and as a quest hero, he very much develops a kind of personal power. He grows from a reluctant, rather cowardly creature who complains when he is hungry or rained upon into a clever and courageous one who rescues the dwarves from the dungeon of the Elvenking, defies both Gollum and Smaug, and survives the Battle of Five Armies. He gains the respect of his companions and develops a personal authority that defines him as a leader. When Gandalf temporarily leaves the group, Bilbo becomes the leader in essential ways: He devises plans and he volunteers to go first in risky situations. Although he is the beneficiary of a great deal of good luck, Bilbo also exercises his will to take on difficult tasks, like confronting Smaug, and he makes ethical choices, like when he spares Gollum's life. He declines heroism and chooses instead to live a relatively quiet life when he returns home, but it is a life enriched by the self-knowledge he achieves on his journey.
