* The main character, Santiago, is introduced as a sheep herder on his way to visit a beautiful merchant's daughter he met over a year ago.
* He plans to share all his strengths with her, including his ability to read and his ability to speak other languages, and the fact that he has studied at the seminary.
* There is a description of how Santiago came to be a shepherd and his father's advice that he can travel the world, but will one day return home and find that it is the best place.
* Santiago has a recurring dream about finding treasure near the Egyptian pyramids.
* Santiago visits a gypsy to interpret his dream, and the gypsy agrees it is a literal dream and he should actually go seek the treasure and provide her with one-tenth of it.
* Part 1 ends with Santiago speaking with an old man...
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