I will not venture a statement that this is the best....but it IS the way I do it. The vast majority of my sheaths go on to live in another home soon after they are finished. It has always been my opinion that the new owner's first impression is the the very most important test and therefore final finish has always been a high priority with me. I never use dye of any kind except on the finished edges. I use tannery dyed leathers in four colors, russet, chestnut, brown and black. I apply one coat of pure neatsfoot oil to the russet and chestnut colors. The brown and black do not need it. The oil will darken the leather and give it a rich color. I then apply one coat of Feibing's TanKote, and when dry follow that with one coat of Tandy's NeatLac. This process gives me the finish I'm looking for although as I said it may not be the best for everyone, but it is the way I do it. There are a lot of photos of my sheaths scattered around this forum so you can judge for yourself.
Paul