Diva Saxona is an investment advisor in the U.S. She has two new clients: Harry Markowitz and Sai Lee.

Sai lee is a retired professor. He is 65 years old, married, and has two adult children. Sai lives in his old home which he brought 35 years ago, and has fully paid off the mortgage. He and his wife take only two vacations each year, to visit their grandchildren. Sai's investment portfolio is valued at USD 9,000,000. Out of this 30% is invested in the shares of a small company which his father had founded. He doesn't want to diversify any of this risk because he thinks it is a source of family pride. Saxona is concerned that Sai rarely trades after making an initial investment. Whenever, Saxona suggests periodic reallocation, Sai responds, " my portfolio will do best if I leave it alone." He also told Saxona that he would be upset to sell an investment, only to then see it appreciate further in value.

Identify two behavioral biases exhibited by Sai Lee. Justify each bias with one example from the information provided