The story illustrates the idea that we often misinterpret events as good or bad luck. A farmer experiences a series of events: first, his horse escapes, which neighbors see as bad luck; then the horse returns with another, seen as good luck; but the farmer remains indifferent. When his son falls and breaks his leg, neighbors again express sympathy, only for the situation to change when the army comes to recruit young men for war, and the son is deemed ineligible due to his injury. 

The farmer's consistent response, "You never really know what's good or bad," emphasizes that what seems unfortunate at first can lead to unexpected blessings, reminding us that life’s events can have unforeseen consequences.