At the beginning of the Team Building phase, Gilbo has 3 Goblins, 2 Dwarves, 2 Elves and a Human card to choose from. Since players will Compete in 4 Cunning and 2 Speed Competitions, Gilbo decides to take an Elf card.
In the passed down hand of 7 cards, Gilbo has to choose one card from the following: 3 Orcs, an Elf, a Goblin, a Dwarf or a Halfling. Gilbo decides to stay true to his plan and chooses another Elf.
In the next hand of 6 cards (4 Elves, a Human and a Goblin), the choice is obvious and it is another Elf.
Gilbo continues to choose Orclympians until he has chosen 8 cards.