Forget the 2026 Midterm Election Results. Warren Buffett's Advice Makes This ETF a No-Brainer Buy

The 2026 U.S. Midterm Elections are now in the books, and they will have wide-ranging impacts on equity markets, particularly for artificial intelligence (AI) stocks. The results arguably highlighted growing public opposition to data center expansion, potentially increasing regulatory scrutiny, permitting hurdles, and construction delays for new AI infrastructure projects.

The next few months — perhaps even the next year — could be rough for many AI companies. Is that a good enough reason for investors to steer clear of the market? Not necessarily. In times like this, it helps to follow the advice of Warren Buffett, arguably the greatest investor of all time.

Buffett isn’t too concerned with election results

Buffett led Berkshire Hathaway (BRKA -0.01%) (BRKB -0.25%) for decades, starting in the mid-1960s. In that time, he saw many elections and presidential administrations, recessions, regulatory changes, crises, wars, market crashes, and much more. Throughout all that, Buffett’s investment strategy has never changed. He is known for his focus on value investing — buying shares of companies trading below their intrinsic value — and his preference for long-term investing. The Oracle of Omaha has been highly successful.

That’s why his investing advice is particularly important to heed when markets are somewhat volatile. Consider what he said following President Trump’s victory in the 2016 U.S. presidential election. For some background, Buffett had been critical of Trump and had backed Hillary Clinton. So, the results weren’t what Buffett wanted, but that did not send the man into panic mode.

As he said following the 2016 election results: “The stock market will be higher 10, 20, 30 years from now, and it would have been with Hillary, and it … will be with Trump.” Now, notice that Buffett couldn’t have been more right. Since Nov. 8, 2016 — when the elections were held that year — all three major U.S. stock market indexes have performed well, despite significant economic disruptions, a worldwide pandemic, severe geopolitical tensions, and other problems.

^IXIC data by YCharts

In all likelihood, equity markets will also rise from current levels over the next decade or two, regardless of the results of the recent midterm elections. Astute investors should position themselves to capitalize on this.

Here’s one great ETF to buy and hold forever

Buying ETFs that track major stock market indexes is arguably one of the best ways to cash in on the long-term trajectory of equity markets. Here’s another fun Buffett story that demonstrates the power of this strategy. In December of 2007, Buffett made a bet with a hedge fund manager. Here were the terms.

Buffett wagered that a low-cost S&P 500 index fund would outperform a hedge fund portfolio over the 10 years from January 2008 to December 2017. Buffett won the bet hands down, and there is a lesson there for investors. Beating the market isn’t easy, and it’s often much better to invest in low-cost ETFs that track major indexes. The Vanguard S&P 500 ETF (VOO +0.30%) is a great option in that vein. Over the past five years, this ETF has produced returns that are almost identical to those of the S&P 500.

In addition, it has an expense ratio (the annual fee it charges to cover some expenses, expressed as a percentage of your investment) of 0.03%. In other words, for every $10,000 invested, the Vanguard S&P 500 ETF charges about $3 in annual expenses — that’s excellent. Now, this doesn’t mean investors shouldn’t buy shares in individual companies. And it might even be worth it to take a peek at Berkshire Hathaway’s portfolio for some inspiration.

However, low-cost ETFs, like the Vanguard S&P 500 ETF, can be excellent holdings to build a well-diversified portfolio around, one that is capable of producing strong returns over the long run regardless of election results, changing administrations, and macroeconomic headwinds.