The reader is entirely dependent on Mr. Hundert's observations in forming an impression of Sedgewick Bell and the development, or lack of it, in his character. This impression is only mitigated or modified by what Hundert reveals about his own character, which is, in many ways, the polar opposite of Bell's. Hundert's first impression of his new pupil is that he is "not only a dullard but a roustabout." He thinks Bell is stupid, but also that he will cause trouble, an amount of trouble that would probably not be possible for a boy with a less forceful character. The young Bell is immediately able to make the other boys in the class feel foolish for dressing up in togas, and arouses Hundert's anger when he later casts aspersions on the teacher's motives for encouraging them to dress like this.

One of the themes of "The Palace Thief" is expressed by the epigram that Hundert quotes from Heraclitus, "Man's character is his fate." This seems to be applicable to Hundert himself throughout most of the story, but it always applies to Sedgewick Bell. Hundert quickly finds that Bell is intellectually incurious, cunning, dishonest, and self-centered. These epithets apply to him over the decades, as he becomes a powerful man whose character does not develop.