We were hired by the owners (investors) to replace all the siding with new James Hardie fiber cement siding.
We use a moisture barrier to wrap the house - t protects against water and wind.
We follow James Hardie guidelines and to your right & below is a nice detail. Notice the square block (it's also made from Hardie fiber cement). To the right a light fixture will place more solidly, & at the bottom is a nicer finish than gaping holes.
The chimney needed sheathing (we saw where the wind over the years twisted it a bit - the framing wasn't enough) and spent almost an entire day on the chimney alone.