The sense of this saying is clearly that both wisdom and stupidity are learned from the company a person keeps.
“He who walks with wise men becomes wise”: For “walks” in the sense of associating with people see 1.15. New Revised Standard Version translates “Whoever walks with. . ..” “Walks with” is often rendered “keeps company with” (see Good News Translation). “Wise men” refers to people who have wisdom or who are wise, not exclusively male adults.
“But the companion of fools will suffer harm”: “Companion” refers to an associate or friend. “The companion of fools” is a person who goes about with or makes close friends with “fools” or people who act stupidly. “Suffers harm” translates the same expression used in 11.15, where Revised Standard Version translates “will smart for it.” See there for comments.
Contemporary English Version translates this verse “Wise friends make you wise, but you hurt yourself by going around with fools.”
Quoted with permission from Reyburn, William D. and Fry, Euan McG. A Handbook on Proverbs. (UBS Helps for Translators). New York: UBS, 2000. For this and other handbooks for translators see here .

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