Event 1

The story begins with the story of Narcissus. The story is about a man that stares at his reflection in a lake and eventually drowns. A nymph finds the lake and asks why it is crying, and it replies that it was looking at itself in Narcissus' eyes.

Event 4

Santiago meets a gypsy women who is going to give him a dream interpretation. Santiago is initially nervous, but the gypsy interprets his dream and asks for 1/10th of his treasure.

Event 2

The main character Santiago is introduced. Santiago is a shepherd who travels for a living, even though he can read and write. Santiago has a troubling dream at a dilapidated church under a sycamore tree.

Event 3

Santiago "talks" to his sheep about a merchant girl he loves. He goes to her father a few days later to sell him wool. While there the daughter asks Santiago why he is a shepherd when he can read. Santiago avoids the question.