Final answer:
Bilbo says that victory is a gloomy business because he understands the consequences and aftermath of war.
Step-by-step explanation:
In The Hobbit by J.R.R. Tolkien, Bilbo says that victory is a gloomy business because he understands the consequences and aftermath of war. He believes that a victory obtained through force and humiliation would not lead to a lasting peace. Instead, Bilbo believes that true peace can only be achieved through equality and a common benefit for all parties involved.