
The Story:
once upon a time, there lived an old man on the northern frontiers of  China. One day, his horse disappeared. His neighbors came to comfort  him. But the old man was not at all upset. He said his loss might turn  out to be a good thing. And he was right. A few months later, not only  did his horse find its way back, it also brought with it another horse,  one that was even better. His neighbors came around again, this time to  congratulate him on his gain. But again, the old man viewed the  situation differently, and said that this "good luck" might bring about  misfortune in the end. Strangely, he was right again. A few days later,  his son fell from the new horse and broke his leg. However, as a result  of the accident, his lame son was not conscripted to fight in the war  and remained with his family.
Explanation:
Nowadays, people refer to the idiom when comforting someone who has  experienced ill fortune. However, although it does imply that bad luck  can sometimes transform into good luck, the reverse is also true; good  luck can sometimes give rise to bad.
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