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In Business parlances there is another saying with the same meaning. “Keep Your Friends Close and Your Enemies Closer” In business its of primary importance to watch your competitor's strategies more closely than tour ally.
I read somewhere an interpretation of this saying as " If you know others and know yourself, you will not be imperiled in a hundred battles; if you do not know others but know yourself, you win one and lose one; if you do not know others and do not know yourself, you will be imperiled in every single battle."
This quote reminds me of The Godfather by Mario Puzo, in which Don Corleone has often stated the importance of knowing each and every quirk and nuance of the enemy's character, if you did not know anything about your enemy, how will you defeat them?
Yes because we better know our enemies better as they can harm us anytime, so we need to be careful from them. And if some friend became our enemy then it is even worse as he/she will obviously know more about us too.
There is more to look for in an enemy than a friend. You can at least expect if your friend has done a certain thing or not. But an enemy is always unpredictable. So, one needs to be very careful dealing with enemies.