Good is the sight of the noble ones, their company is always happy. Without seeing fools, one would always be happy.

Sāhu dassanamariyānaṃ — good is the sight of the noble ones: sāhu is good, excellent. Dassana is sight, seeing. Ariya are the noble ones, the awakened. The simple act of seeing a noble being — being in their presence — is beneficial.

Sannivāso sadā sukho — their company is always happy: sannivāsa is living together, company. The company of the noble produces continuous happiness, not because they entertain but because their presence elevates the quality of the mind of those nearby.

Adassanena bālānaṃ — without seeing fools: the second part inverts the logic: just as the presence of the noble is beneficial, the absence of fools is also beneficial.

Niccameva sukhī siyā — one would always be happy: the combination of seeking the company of the wise and avoiding that of fools is the social formula for happiness. It is not elitism but spiritual hygiene.