Strictly personal preference here, but for individual stocks I'd suggest avoiding
1) Many small holdings (due to the recordkeeping hassle and minimal upside), and
2) A very few very large holdings (due to the risk of individual failure).
If, after investing the bulk of your money in diversified index funds you have some mediumish amount of money and want to try your luck at a few individual stocks, then go for it.
As your holdings seem to fall into category #1 above, I'd sell them. But it's not a big deal either way.
I agree. The only practical way to achieve decent diversification when you are young/don't have a lot of capital is with ETFs or index funds and at least 80-90% of your saving should be directed into that.
After that than I can see benefits for trading individual stocks, since I believe the mental exercise of buying or selling gives a you a better understanding of the market as whole.
Even when I was young I tried to trade in only round lots, or maybe 40 or 50 shares for stocks trading at $50+/share, so my typical purchase were $2,000 to $3,000. Now trading costs are smaller now days so maybe you can cut that in figure in 1/2. For a young person/beginning investor I'd rather see them spend the time to carefully evaluating one or two stocks a year from your early 20s until your early 30s than deal with five.
So my questions is much less about the money or taxes but rather. Did you learn something about the market/stocks by purchasing this individual issues? and did you enjoy the challenge of picking stocks? If the answer to both is yes than keep them, if the answer is no then sell them, and if you are the fence well give it a year.