What is the most sensible way to prep the base of the outside of my house to avoid leaks and moisture inside?

Question:Just bought a split-level house (fully finished basement that is 1/2 underground) built in the late 1950's and it's great--very well maintained.

What I noticed, however, is that all around the base of the outside (brick) walls, the old owners placed a layer of rocks, sand, brick pieces, cement chunks, etc. piled against it. Our home inspector said that they were attempting to "raise the grade" of the area outside the house, to avoid potential leaks and moisture, and just chose a really cheap and unattractive way to do so.

My question is what is the proper way to do this? Is it to place more dirt/earth around the home to literally raise the grade of the lawn around it? Or can/should it be done with concrete or some other material? How?

(The inspector says that there is no evidence of a prior leak or history of leaking. The owners obviously worked hard, though, to prevent one from happening, which may be a hint that we should be vigilant to the problem as well.)

Thanks!

Answers:
You need to 'stucko' the foundation inside and out, It's a type of cement that has chopped fiberglass in it, and you spread out smoothly all over the blocks, and after you're done, you can paint whichever color you prefer, but be sure and prime it with a good base filler first!