Nicomachean Ethics IX.9

Today's is a longer chapter; it is on the subject of whether people who are already happy need friends or not. There is not much to comment on here, other than to draw out the argument; the conclusion, that the supremely happy man will need virtuous friends or he'll be deficient in something important (and thus not supremely happy) is obvious.
It is also disputed whether the happy man will need friends or not. It is said that those who are supremely happy and self-sufficient have no need of friends; for they have the things that are good, and therefore being self-sufficient they need nothing further, while a friend, being another self, furnishes what a man cannot provide by his own effort; whence the saying 'when fortune is kind, what need of friends?' But it seems strange, when one assigns all good things to the happy man, not to assign friends, who are thought the greatest of external goods. And if it is more characteristic of a friend to do well by another than to be well done by, and to confer benefits is characteristic of the good man and of virtue, and it is nobler to do well by friends than by strangers, the good man will need people to do well by. This is why the question is asked whether we need friends more in prosperity or in adversity, on the assumption that not only does a man in adversity need people to confer benefits on him, but also those who are prospering need people to do well by. Surely it is strange, too, to make the supremely happy man a solitary; for no one would choose the whole world on condition of being alone, since man is a political creature and one whose nature is to live with others. Therefore even the happy man lives with others; for he has the things that are by nature good. And plainly it is better to spend his days with friends and good men than with strangers or any chance persons. Therefore the happy man needs friends.

What then is it that the first school means, and in what respect is it right? Is it that most identify friends with useful people? Of such friends indeed the supremely happy man will have no need, since he already has the things that are good; nor will he need those whom one makes one's friends because of their pleasantness, or he will need them only to a small extent (for his life, being pleasant, has no need of adventitious pleasure); and because he does not need such friends he is thought not to need friends.

But that is surely not true. For we have said at the outset that happiness is an activity; and activity plainly comes into being and is not present at the start like a piece of property. If (1) happiness lies in living and being active, and the good man's activity is virtuous and pleasant in itself, as we have said at the outset, and (2) a thing's being one's own is one of the attributes that make it pleasant, and (3) we can contemplate our neighbours better than ourselves and their actions better than our own, and if the actions of virtuous men who are their friends are pleasant to good men (since these have both the attributes that are naturally pleasant),-if this be so, the supremely happy man will need friends of this sort, since his purpose is to contemplate worthy actions and actions that are his own, and the actions of a good man who is his friend have both these qualities.

The chain of logic here is as follows: 

1) Happiness is an activity, a state that has to be made by action rather than something one inherits like property;
2) The particular activity that is happiness consists in using your vital powers to pursue virtue;
3) Virtuous friends will pursue virtue together, which is the happiness activity.
∴ To be supremely happy, one needs virtuous friends.

Notice the point about observation, though, which becomes important by the end of this chapter. 

After the jump, some further explanation of the mechanism and proof by Aristotle; and an important point buried in the argument that scholars often miss.