For Robert – the best known way is to ensure that the inner end is above the waterline. Otherwise, follow the US convention of calling such tubes "stuffing boxes" – they get stuffed with grease. On a model, light water resistant grease as too much heavy grease introduces drag.
Another way is to make sure the bearings are a close fit, and that the end play is minimal. I tend to favour using a small "O" ring as a washer at the prop end.