Plant should be in potted into soil in a container, and bigger is better as they are known to resent transplanting. Use a soil that drains well. New leaves will appear bronze, then they will turn green. Can you have it outside for the Summer? Really would do best in full, day long sun. I realize you are in SF, but sun is that limited? If it is that cool outside, do you have a warmer microclimate (south side of house, etc...)? Gotta be better than inside. If it is used to shade, made the transition to sun a bit gradual. I would not fertilize immediately after transplanting but wait until the plant is acclimated.

Just out of curiosity, are avocados grown at all in the ground in your area?

hi - thanks for your advice! I will pot it into soil and put it outside. It's summer (i.e winter) here right now, but should end by the time September rolls around. Which is nice I guess, it can get acclimated before it gets very hot and sunny.

I don't know if avocados are grown in the ground in SF; I am sure they are in warmer parts of SF. I'm not expecting to harvest this ever (in 15 yrs) but will be happy to have a nice happy plant.

In the Southeastern USA, I have several well-potted Avocado seedlings that have been coming up for a couple of months outdoors in full sunlight. However, just recently, something (some pest) has been coming in late at night or very early morning and literally chopping up the shoots. The little trees have been making it to about 6 inches tall, and then I find them suddenly chopped and broken into one-inch sections right down to ground level. I doubt that the pest is an insect, as the shoots and leaves don't appear to be eaten; rather it looks like something is just TASTING the plants, breaking them up, and leaving the debris. I'm guessing that it may be a rodent of some kind...a rat or mouse, maybe? Does this damage sound familiar to anyone?

In the absence of response so far, I chose to set a number of juicy mouse traps and rat traps in my large garden and in several of the large pots. We shall see what develops.