There are two schools of thought in meditation that kinda apply to this. Some people focus on their breath or a mantra or hum and try to keep thoughts from getting in. If a though appears, just label it and let it pass.

Others do what you're describing, let the thoughts come but see them as just passing clouds in the sky. Eventually you distance yourself from that stream of consciousness and can focus just on your breath.

The two are not mutually exclusive either.