I'm sure someone will have a reason why my way is wrong, but I've personally had good luck with finishing wood (gun stocks and grips) by stripping it down to bare wood, sanding with successively finer grits up to 1200 grit, polishing it like metal... It gets the wood SUPER smooth, brings out the grain, and makes the lighter parts of the wood catch the light so it almost glows. After sanding, I use Minwax Spar Urethane (outdoor rated stuff) applied in very thin coats, sanded lightly with 400 grit in between coats. I usually do 4-5 thin coats. I'll have pictures of my Mosin/Nagant M44 once I finish (waiting on the 2nd coat to dry now, so maybe 2 more days).
An oil rubbed finish would look much better than the polyurethane, in my opinion, but I don't have the free time for it as it's a bit more time consuming than simple poly finish.